What Do Hedge Funds Think of Wi-LAN Inc – US listing (WILN)?

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Bryn Mawr Capital. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because only one of the 700+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was Springbok Capital).

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Wi-LAN Inc – US listing (NASDAQ:WILN) but similarly valued. These stocks are Horizon Bancorp (NASDAQ:HBNC), XenoPort, Inc. (NASDAQ:XNPT), Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL), and Harte-Hanks, Inc. (NYSE:HHS). All of these stocks’ market caps are closest to WILN’s market cap.

As you can see these stocks had an average of 12.25 hedge funds with bullish positions and the average amount invested in these stocks was $37 million. That figure was $2 million in WILN’s case. Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) is the most popular stock in this table. On the other hand Horizon Bancorp (NASDAQ:HBNC) is the least popular one with only 4 bullish hedge fund positions. Wi-LAN Inc – US listing (NASDAQ:WILN) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard RIGL might be a better candidate to consider a long position.