Wheeler Real Estate Investment Trust Inc (WHLR): Are Hedge Funds Right About This Stock?

Seeing as Wheeler Real Estate Investment Trust Inc (NASDAQ:WHLR) has experienced a declination in interest from the smart money, it’s safe to say that there is a sect of fund managers who were dropping their entire stakes by the end of the third quarter. At the top of the heap, Bulldog Investors dumped the biggest stake of all the hedgies monitored by Insider Monkey, totaling about $4 million in stock. Steve Pei’s fund, Gratia Capital, also dropped its stock, about $1.1 million worth of shares. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest fell by 2 funds by the end of the third quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Wheeler Real Estate Investment Trust Inc (NASDAQ:WHLR) but similarly valued. We will take a look at Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE), Northwest Pipe Company (NASDAQ:NWPX), Catabasis Pharmaceuticals Inc (NASDAQ:CATB), and Shore Bancshares, Inc. (NASDAQ:SHBI). This group of stocks’ market values are closest to Wheeler Real Estate Investment Trust Inc (NASDAQ:WHLR)’s market value.

As you can see, these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $17 million. That figure was $30 million in Wheeler Real Estate Investment Trust Inc (NASDAQ:WHLR)’s case. Northwest Pipe Company (NASDAQ:NWPX) is the most popular stock in this table. On the other hand, Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE) is the least popular one with only 4 bullish hedge fund positions. Wheeler Real Estate Investment Trust Inc (NASDAQ:WHLR) 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, Northwest Pipe Company (NASDAQ:NWPX) might be a better candidate to consider a long position.