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Cooper Tire & Rubber Co (CTB): Are Hedge Funds Right About This Stock?

Judging by the fact that Cooper Tire & Rubber Co (NYSE:CTB) has witnessed declining sentiment from the smart money, it’s easy to see that there lies a certain “tier” of funds that decided to sell off their positions entirely in the third quarter. It’s worth mentioning that Jacob Gottlieb’s Visium Asset Management dumped the biggest stake of the 700 funds tracked by Insider Monkey, valued at about $15 million in stock, and Alexander Roepers’ Atlantic Investment Management was right behind this move, as the fund sold off about $8.5 million worth of shares. These bearish behaviors are interesting, as total hedge fund interest fell by 1 funds in the third quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Cooper Tire & Rubber Co (NYSE:CTB) but similarly valued. We will take a look at LendingClub Corp (NYSE:LC), Government Properties Income Trust (NYSE:GOV), Liberty Tripadvisor Holdings Inc (NASDAQ:LTRPA), and KLX Inc (NASDAQ:KLXI). This group of stocks’ market values are closest to CTB’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
LC 24 237509 0
GOV 6 89783 0
LTRPA 25 478942 -3
KLXI 22 422767 -1

As you can see these stocks had an average of 19.25 hedge funds with bullish positions and the average amount invested in these stocks was $307 million. That figure was $142 million in CTB’s case. Liberty Tripadvisor Holdings Inc (NASDAQ:LTRPA) is the most popular stock in this table. On the other hand Government Properties Income Trust (NYSE:GOV) is the least popular one with only 6 bullish hedge fund positions. Cooper Tire & Rubber Co (NYSE:CTB) 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 LTRPA might be a better candidate to consider a long position in.

Disclosure: None

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