What Do Hedge Funds Think of YuMe Inc (YUME)?

Judging by the fact that YuMe Inc (NYSE:YUME) has faced a declination in interest from the aggregate hedge fund industry, we can see that there was a specific group of hedgies that decided to sell off their full holdings in the third quarter. At the top of the heap, Mark N. Diker’s Diker Management sold off the largest investment of the “upper crust” of funds watched by Insider Monkey, worth an estimated $9.8 million in stock, and Brian C. Freckmann’s Lyon Street Capital was right behind this move, as the fund said goodbye to about $1.1 million worth. These bearish behaviors are interesting, as total hedge fund interest fell by 4 funds in the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as YuMe Inc (NYSE:YUME) but similarly valued. These stocks are Fuel Systems Solutions, Inc. (NASDAQ:FSYS), Atlantic Coast Financial Corp (NASDAQ:ACFC), PharmAthene, Inc. (NYSEMKT:PIP), and OHA Investment Corp (NASDAQ:OHAI). This group of stocks’ market valuations match YUME’s market valuation.

As you can see these stocks had an average of 4.75 hedge funds with bullish positions and the average amount invested in these stocks was $13 million. That figure was $2 million in YUME’s case. PharmAthene, Inc. (NYSEMKT:PIP) is the most popular stock in this table. On the other hand Atlantic Coast Financial Corp (NASDAQ:ACFC) is the least popular one with only 4 bullish hedge fund positions. YuMe Inc (NYSE:YUME) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard PIP might be a better candidate to consider a long position.