Seeing as Glaukos Corp (NYSE:GKOS) has witnessed a declination in interest from the smart money, it’s safe to say that there lies a certain “tier” of hedge funds that elected to cut their full holdings by the end of the third quarter. Interestingly, Paul Tudor Jones’s Tudor Investment Corp sold off the biggest investment of all the hedgies monitored by Insider Monkey, totaling an estimated $1.7 million in stock. Benjamin A. Smith’s fund, Laurion Capital Management, also dumped its stock, about $1 million worth of shares. These bearish behaviors are interesting, as aggregate hedge fund interest fell by 3 funds by the end of the third quarter.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Glaukos Corp (NYSE:GKOS) but similarly valued. These stocks are GasLog Ltd (NYSE:GLOG), Par Pacific Holdings, Inc. (NYSEMKT:PARR), American Railcar Industries, Inc. (NASDAQ:ARII), and NutriSystem Inc. (NASDAQ:NTRI). This group of stocks’ market valuations resemble Glaukos Corp (NYSE:GKOS)’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 15 hedge funds with bullish positions and the average amount invested in these stocks was $213 million. That figure was $80 million in Glaukos Corp (NYSE:GKOS)’s case. NutriSystem Inc. (NASDAQ:NTRI) is the most popular stock in this table. On the other hand, American Railcar Industries, Inc. (NASDAQ:ARII) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks, Glaukos Corp (NYSE:GKOS) is even less popular than American Railcar Industries, Inc. (NASDAQ:ARII). 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.