Should You Follow The Smart Money’s Lead On Safety Insurance Group, Inc. (SAFT)?

Because Safety Insurance Group, Inc. (NASDAQ:SAFT) has witnessed bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there exists a select few funds who sold off their full holdings last quarter. Intriguingly, John Overdeck and David Siegel’s Two Sigma Advisors cut the biggest position of the “upper crust” of funds monitored by Insider Monkey, valued at an estimated $0.5 million in stock, and Roger Ibbotson’s Zebra Capital Management was right behind this move, as the fund also dumped about $0.5 million worth of shares. These moves are interesting, as total hedge fund interest was cut by 1 fund last quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Safety Insurance Group, Inc. (NASDAQ:SAFT) but similarly valued. These stocks are Calgon Carbon Corporation (NYSE:CCC), Inland Real Estate Corporation (NYSE:IRC), GTT Communications Inc (NYSE:GTT), and Steiner Leisure Ltd (NASDAQ:STNR). All of these stocks’ market caps resemble Safety Insurance Group, Inc.’s market cap.

As you can see these stocks had an average of 11.75 hedge funds with bullish positions and the average amount invested in these stocks was $84 million. That figure was $29 million in Safety Insurance Group, Inc.’s case. Steiner Leisure Ltd (NASDAQ:STNR) is the most popular stock in this table. On the other hand Inland Real Estate Corporation (NYSE:IRC) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Safety Insurance Group, Inc. (NASDAQ:SAFT) is even less popular than IRC. 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.