Judging by the fact that DineEquity Inc (NYSE:DIN) has experienced bearish sentiment from the aggregate hedge fund industry, it’s easy to see that there was a specific group of funds that elected to cut their full holdings in the third quarter. Interestingly, Chuck Royce’s Royce & Associates got rid of the biggest stake of all the investors watched by Insider Monkey, totaling an estimated $4 million in stock, and David Costen Haley’s HBK Investments was right behind this move, as the fund cut about $2.3 million worth of shares.
Let’s also examine hedge fund activity in other stocks similar to DineEquity Inc (NYSE:DIN). These stocks are Eaton Vance Ltd Duration Income Fund (NYSEMKT:EVV), Semtech Corporation (NASDAQ:SMTC), Astoria Financial Corp (NYSE:AF), and AZZ Incorporated (NYSE:AZZ). This group of stocks’ market valuations are similar to DIN’s market valuation.
|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 10 hedge funds with bullish positions and the average amount invested in these stocks was $51 million, which is lower than the $107 million figure in DIN’s case. Semtech Corporation (NASDAQ:SMTC) 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 three investors holding long positions. DineEquity Inc (NYSE:DIN) 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 Semtech Corporation (NASDAQ:SMTC) might be a better candidate to consider taking a long position in.