Fidelity & Guaranty Life (FGL): Are Hedge Funds Right About This Stock?

Since Fidelity & Guaranty Life (NYSE:FGL) has experienced bearish sentiment from hedge fund managers, it’s safe to say that there lies a certain “tier” of funds that elected to cut their full holdings in the third quarter. Intriguingly, Gregg Moskowitz’s Interval Partners dumped the biggest stake of the 700 funds followed by Insider Monkey, totaling an estimated $1.8 million in stock, and Ross Berman’s Green Owl Capital Management was right behind this move, as the fund dumped about $1.4 million worth. These transactions are intriguing to say the least, as total hedge fund interest was cut by 3 funds in the third quarter.

Let’s go over hedge fund activity in other stocks similar to Fidelity & Guaranty Life (NYSE:FGL). We will take a look at Alder Biopharmaceuticals Inc (NASDAQ:ALDR), AMN Healthcare Services, Inc. (NYSE:AHS), Vishay Intertechnology (NYSE:VSH), and Huron Consulting Group (NASDAQ:HURN). This group of stocks’ market caps match FGL’s market cap.

As you can see these stocks had an average of 20.25 hedge funds with bullish positions and the average amount invested in these stocks was $173 million. That figure was $63 million in FGL’s case. Alder Biopharmaceuticals Inc (NASDAQ:ALDR) is the most popular stock in this table. On the other hand Huron Consulting Group (NASDAQ:HURN) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks Fidelity & Guaranty Life (NYSE:FGL) is even less popular than HURN. 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.