Do Hedge Funds Love Sierra Wireless, Inc. (USA) (SWIR)?

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Because Sierra Wireless, Inc. (USA) (NASDAQ:SWIR) has faced declining sentiment from the smart money, logic holds that there lies a certain “tier” of funds that elected to cut their entire stakes by the end of the third quarter. Interestingly, Clint Murray’s Lodge Hill Capital dropped the largest investment of all the hedgies followed by Insider Monkey, comprising about $3.9 million in stock, and D. E. Shaw’s D E Shaw was right behind this move, as the fund dropped about $1.8 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Sierra Wireless, Inc. (USA) (NASDAQ:SWIR) but similarly valued. We will take a look at Cynosure, Inc. (NASDAQ:CYNO), Affymetrix, Inc. (NASDAQ:AFFX), Yadkin Financial Corp (NASDAQ:YDKN), and Supernus Pharmaceuticals Inc (NASDAQ:SUPN). All of these stocks’ market caps are closest to SWIR’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CYNO 18 77202 3
AFFX 24 139583 2
YDKN 10 88756 0
SUPN 23 59846 0

As you can see these stocks had an average of 18.75 hedge funds with bullish positions and the average amount invested in these stocks was $91 million, compared to $18 million in SWIR’s case. Affymetrix, Inc. (NASDAQ:AFFX) is the most popular stock in this table, while Yadkin Financial Corp (NASDAQ:YDKN) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks, Sierra Wireless, Inc. (USA) (NASDAQ:SWIR) is even less popular than YDKN. 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.

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