Argo Group International Holdings, Ltd. (AGII): Are Hedge Funds Right To Ditch This Stock?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually cut their positions entirely. It’s worth mentioning that Ken Griffin’s Citadel Investment Group cut the largest investment of all the investors tracked by Insider Monkey, comprising close to $3.8 million in stock. Jacob Gottlieb’s fund, Visium Asset Management, also cut its stock, about $2.2 million worth.

Let’s now review hedge fund activity in other stocks similar to Argo Group International Holdings, Ltd. (NASDAQ:AGII). We will take a look at Ebix Inc (NASDAQ:EBIX), Dana Holding Corporation (NYSE:DAN), DineEquity Inc (NYSE:DIN), and Eaton Vance Ltd Duration Income Fund (NYSEMKT:EVV). All of these stocks’ market caps match AGII’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
EBIX 18 163317 4
DAN 26 381367 -1
DIN 16 106871 0
EVV 3 4448 -1

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $164 million. That figure was $102 million in AGII’s case. Dana Holding Corporation (NYSE:DAN) is the most popular stock in this table. On the other hand Eaton Vance Ltd Duration Income Fund (NYSEMKT:EVV) is the least popular one with only 3 bullish hedge fund positions. Argo Group International Holdings, Ltd. (NASDAQ:AGII) 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 DAN might be a better candidate to consider taking a long position in.

Disclosure: None