GameStop Corp. (GME) Sinking As Comps Decline, Hardware Sales Plummet

Because GameStop Corp. (NYSE:GME) has experienced bearish sentiment from hedge fund managers, we can see that there were a few fund managers who sold off their positions entirely by the end of the first quarter. It’s worth mentioning that Glenn Russell Dubin’s Highbridge Capital Management said goodbye to the biggest position of the 760 funds followed by Insider Monkey, valued at about $5.2 million in stock, while Constantinos J. Christofilis’s Archon Capital Management was right behind this move, as the fund cut about $4.1 million worth of shares. These transactions are intriguing to say the least, as total hedge fund interest dropped by 4 funds by the end of the first quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as GameStop Corp. (NYSE:GME) but similarly valued. We will take a look at Air Lease Corp (NYSE:AL), Hill-Rom Holdings, Inc. (NYSE:HRC), American Homes 4 Rent (NYSE:AMH), and Webster Financial Corporation (NYSE:WBS). This group of stocks’ market caps are similar to GME’s market cap.

As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $404 million. That figure was $391 million in GME’s case. Hill-Rom Holdings, Inc. (NYSE:HRC) is the most popular stock in this table. On the other hand Webster Financial Corporation (NYSE:WBS) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks GameStop Corp. (NYSE:GME) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio on the dip.

Disclosure: None