Because Boulder Brands Inc (NASDAQ:BDBD) has faced a declining sentiment from hedge fund managers, it’s safe to say that there is a sect of funds who sold off their full holdings in the third quarter. Intriguingly, Jeffrey Smith’s Starboard Value LP sold off the largest position of all the hedgies tracked by Insider Monkey, totaling an estimated $20.6 million in stock. Joseph Mathias’ fund, Concourse Capital Management, also dumped its stock, about $0.8 million worth. These bearish behaviors are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s check out hedge fund activity in other stocks similar to Boulder Brands Inc (NASDAQ:BDBD). These stocks are Enterprise Financial Services Corp (NASDAQ:EFSC), Cowen Group, Inc. (NASDAQ:COWN), Tower International Inc (NYSE:TOWR), and Sagent Pharmaceuticals Inc (NASDAQ:SGNT). This group of stocks’ market caps resembles Boulder Brands Inc (NASDAQ:BDBD)’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see, these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $65 million. That figure was $190 million in Boulder Brands Inc (NASDAQ:BDBD)’s case. Tower International Inc (NYSE:TOWR) is the most popular stock in this table. On the other hand, Sagent Pharmaceuticals Inc (NASDAQ:SGNT) is the least popular one with only 10 bullish hedge fund positions. Boulder Brands Inc (NASDAQ:BDBD) 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, Tower International Inc (NYSE:TOWR) might be a better candidate to consider a long position.