Colliers International Group Inc (CIGI): Are Hedge Funds Right About This Stock?

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Millennium Management. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case, because only one of the 700+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was Royce & Associates).

Let’s now review hedge fund activity in other stocks similar to Colliers International Group Inc (NASDAQ:CIGI). We will take a look at Eaton Vance Ltd Duration Income Fund (NYSEMKT:EVV), Interface, Inc. (NASDAQ:TILE), Neustar Inc (NYSE:NSR), and International Speedway Corporation (NASDAQ:ISCA). This group of stocks’ market caps match CIGI’s market cap.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $146 million, compared to $49 million in CIGI’s case. Interface, Inc. (NASDAQ:TILE) is the most popular stock in this table, while Eaton Vance Ltd Duration Income Fund (NYSEMKT:EVV) is the least popular one with only 6 bullish hedge fund positions. Colliers International Group Inc (NASDAQ:CIGI) 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 TILE might be a better candidate to consider a long position.