Judging by the fact that Ladder Capital Corp (NYSE:LADR) has experienced bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there were a few hedgies that elected to cut their positions entirely heading into Q4. Interestingly, Geoffrey Raynor’s Q Investments (Specter Holdings) cut the largest position of the 700 funds tracked by Insider Monkey, comprising close to $2 million in stock. Peter Muller’s fund, PDT Partners, also cut its stock, about $0.8 million worth. These transactions are important to note, as aggregate hedge fund interest dropped by 2 funds heading into Q4.
Let’s also examine hedge fund activity in other stocks similar to Ladder Capital Corp (NYSE:LADR). These stocks are Houlihan Lokey Inc (NYSE:HLI), Jumei International Holding Ltd (ADR) (NYSE:JMEI), National Beverage Corp. (NASDAQ:FIZZ), and MGE Energy, Inc. (NASDAQ:MGEE). This group of stocks’ market valuations resemble LADR’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 $35 million. That figure was $74 million in LADR’s case. Houlihan Lokey Inc (NYSE:HLI) is the most popular stock in this table. On the other hand MGE Energy, Inc. (NASDAQ:MGEE) is the least popular one with only 7 bullish hedge fund positions. Ladder Capital Corp (NYSE:LADR) 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 HLI might be a better candidate to consider a long position.