Do Hedge Funds Love Inuvo, Inc. (INUV)?

Judging by the fact that Inuvo, Inc. (NYSEMKT:INUV) has witnessed bearish sentiment from the smart money, it’s safe to say that there lies a certain “tier” of fund managers that decided to sell off their full holdings by the end of the third quarter. At the top of the heap, Cliff Asness’ AQR Capital Management dropped the largest investment of the “upper crust” of funds watched by Insider Monkey, valued at about $0.1 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund sold off about $0 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest was cut by 1 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 Inuvo, Inc. (NYSEMKT:INUV) but similarly valued. These stocks are TransAct Technologies Incorporated (NASDAQ:TACT), Arch Coal Inc (NYSE:ACI), Timmins Gold Corp (NYSEMKT:TGD), and MediciNova, Inc. (NASDAQ:MNOV). This group of stocks’ market values are similar to INUV’s market value.

As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $4 million. That figure was $5 million in INUV’s case. Arch Coal Inc (NYSE:ACI) is the most popular stock in this table and MediciNova, Inc. (NASDAQ:MNOV) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Inuvo, Inc. (NYSEMKT:INUV) is even less popular than MNOV. 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 required.