Because Freshpet Inc (NASDAQ:FRPT) has experienced falling interest from the aggregate hedge fund industry, it’s easy to see that there exists a select few funds that decided to sell off their full holdings heading into Q4. Interestingly, Clifford Fox’s Columbus Circle Investors dumped the biggest investment of the “upper crust” of funds watched by Insider Monkey, valued at about $7.3 million in stock, and Peter Muller’s PDT Partners was right behind this move, as the fund said goodbye to about $0.3 million worth of shares. 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 now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Freshpet Inc (NASDAQ:FRPT) but similarly valued. We will take a look at Guaranty Bancorp (NASDAQ:GBNK), Financial Institutions, Inc. (NASDAQ:FISI), Dynex Capital Inc (NYSE:DX), and Boulevard Acquisition Corp II (NASDAQ:BLVDU). This group of stocks’ market values resemble Freshpet Inc’s market value.
|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 9.75 hedge funds with bullish positions and the average amount invested in these stocks was $64 million. That figure was $31 million in Freshpet Inc’s case. Boulevard Acquisition Corp II (NASDAQ:BLVDU) is the most popular stock in this table. On the other hand Dynex Capital Inc (NYSE:DX) is the least popular one with only 5 bullish hedge fund positions. Freshpet Inc (NASDAQ:FRPT) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Boulevard Acquisition Corp II might be a better candidate to consider a long position.