Advantage Oil & Gas Ltd (USA) (AAV): Are Hedge Funds Right About This Stock?

Seeing as Advantage Oil & Gas Ltd (USA) (NYSE:AAV) has experienced bearish sentiment from hedge fund managers, logic holds that there were a few fund managers that elected to cut their positions entirely in the third quarter. At the top of the heap, Phill Gross and Robert Atchinson’s Adage Capital Management dropped the biggest position of the “upper crust” of funds monitored by Insider Monkey, comprising an estimated $2.5 million in stock, and Cliff Asness’s AQR Capital Management was right behind this move, as the fund cut about $1.6 million worth. These transactions are interesting, as aggregate hedge fund interest was cut by 2 funds in the third quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Advantage Oil & Gas Ltd (USA) (NYSE:AAV). We will take a look at TPG Specialty Lending Inc (NYSE:TSLX), Continental Building Products Inc (NYSE:CBPX), Virtus Investment Partners Inc (NASDAQ:VRTS), and Global Eagle Acquisition Corp (NASDAQ:ENT). This group of stocks’ market values match AAV’s market value.

As you can see these stocks had an average of 14.25 hedge funds with bullish positions and the average amount invested in these stocks was $174 million. That figure was $7 million in AAV’s case. Continental Building Products Inc (NYSE:CBPX) is the most popular stock in this table. On the other hand TPG Specialty Lending Inc (NYSE:TSLX) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Advantage Oil & Gas Ltd (USA) (NYSE:AAV) is as less popular as TSLX. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.