Do Hedge Funds Love Frontier Communications Corp (FTR)?

Seeing as Frontier Communications Corp (NASDAQ:FTR) has experienced declining sentiment from hedge fund managers, it’s easy to see that there lies a certain “tier” of hedgies who were dropping their positions entirely last quarter. Intriguingly, Paul Orlin and Alex Porter’s Amici Capital cut the biggest position of the “upper crust” of funds tracked by Insider Monkey, comprising close to $17.9 million in stock. John M. Angelo and Michael L. Gordon’s fund, Angelo Gordon & Co, also sold off its stock, about $17.4 million worth. These transactions are interesting, as total hedge fund interest dropped by 8 funds last quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Frontier Communications Corp (NASDAQ:FTR) but similarly valued. These stocks are CBOE Holdings, Inc (NASDAQ:CBOE), East West Bancorp, Inc. (NASDAQ:EWBC), Realogy Holdings Corp (NYSE:RLGY), and Allegion PLC (NYSE:ALLE). This group of stocks’ market caps are closest to FTR’s market cap.

As you can see these stocks had an average of 30 hedge funds with bullish positions and the average amount invested in these stocks was $990 million. That figure was $451 million in FTR’s case. Realogy Holdings Corp (NYSE:RLGY) is the most popular stock in this table. On the other hand CBOE Holdings, Inc (NASDAQ:CBOE) is the least popular one with only 19 bullish hedge fund positions. Frontier Communications Corp (NASDAQ:FTR) 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 RLGY might be a better candidate to consider a long position.