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Do Hedge Funds Love bebe stores, inc. (BEBE)?

Because bebe stores, inc. (NASDAQ:BEBE) has experienced a declination in interest from the entirety of the hedge funds we track, we can see that there was a specific group of funds that decided to sell off their positions entirely in the third quarter. Intriguingly, Cliff Asness’ AQR Capital Management cut the biggest stake of the “upper crust” of funds tracked by Insider Monkey, valued at an estimated $0.6 million in stock, and Mark N. Diker’s Diker Management was right behind this move, as the fund dumped about $0.5 million worth of shares. These bearish behaviors are important to note, as aggregate hedge fund interest dropped by 5 funds in the third quarter.

Let’s go over hedge fund activity in other stocks similar to bebe stores, inc. (NASDAQ:BEBE). These stocks are Universal Stainless & Alloy Products (NASDAQ:USAP), Tandy Leather Factory, Inc. (NASDAQ:TLF), Yingli Green Energy Hold. Co. Ltd. (ADR) (NYSE:YGE), and Key Energy Services, Inc. (NYSE:KEG). This group of stocks’ market values are closest to bebe stores, inc. (NASDAQ:BEBE)’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
USAP 5 20451 0
TLF 4 29789 0
YGE 4 2054 1
KEG 15 15419 -5

As you can see, these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $17 million. That figure was $5 million in bebe stores, inc. (NASDAQ:BEBE)’s case. Key Energy Services, Inc. (NYSE:KEG) is the most popular stock in this table. On the other hand, Tandy Leather Factory, Inc. (NASDAQ:TLF) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks, bebe stores, inc. (NASDAQ:BEBE) is even less popular than Tandy Leather Factory, Inc. (NASDAQ:TLF). 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.

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