What Does Hedge Fund Sentiment Say About ROI Acquisition Corp (ROIQ)?

Judging by the fact that ROI Acquisition Corp (NASDAQ:ROIQ) has witnessed a declination in interest from the entirety of the hedge funds we track, it’s safe to say that there lies a certain “tier” of funds that slashed their entire stakes heading into Q4. It’s worth mentioning that Louis Bacon’s Moore Global Investments cut the largest investment of the “upper crust” of funds watched by Insider Monkey, totaling close to $5.6 million in stock, and Glenn Russell Dubin of Highbridge Capital Management was right behind this move, as the fund dropped about $5.2 million worth. These bearish behaviors are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s go over hedge fund activity in other stocks similar to ROI Acquisition Corp (NASDAQ:ROIQ). We will take a look at Salem Communications Corp (NASDAQ:SALM), Xcel Brands Inc (NASDAQ:XELB), Emergent Capital Inc (NYSE:EMG), and Gulf Island Fabrication, Inc. (NASDAQ:GIFI). This group of stocks’ market valuations are similar to ROIQ’s market valuation.

As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $28 million. Moreover, the table indicates that hedge funds are the most bullish on Gulf Island Fabrication, Inc. (NASDAQ:GIFI), which was included in 13 equity portfolios at the end of September. ROI Acquisition Corp (NASDAQ:ROIQ) saw the same number of funds reporting stakes in the latest round of 13F filings, while the aggregate value of these stakes stood at $35 million. This suggests that ROIQ might make for a good investment at the moment, but, in any case, a more detailed analysis is required to better assess the company’s situation.