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GoPro Inc (GPRO) Signs Agreement With Red Bull; Will it be Enough to Turn Around Sinking Hedge Fund Interest?

Judging by the fact that GoPro Inc (NASDAQ:GPRO) has faced a declination in interest from the smart money, logic holds that there was a specific group of money managers who were dropping their full holdings heading into Q2. Interestingly, John Lykouretzos’ Hoplite Capital Management dropped the biggest position of the 700 funds watched by Insider Monkey, totaling about $19.6 million in stock. Rob Citrone’s fund, Discovery Capital Management, also dropped its stock, about $14.9 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest dropped by 2 funds heading into Q2.

Let’s now take a look at hedge fund activity in other stocks similar to GoPro Inc (NASDAQ:GPRO). These stocks are Sears Holdings Corporation (NASDAQ:SHLD), Imperva Inc (NYSE:IMPV), Whiting Petroleum Corp (NYSE:WLL), and Euronav NV Ordinary Shares (NYSE:EURN). This group of stocks’ market caps resemble GPRO’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SHLD 20 982013 0
IMPV 15 97310 -15
WLL 43 303578 3
EURN 27 218487 5

As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $400 million. That figure was $96 million in GPRO’s case. Whiting Petroleum Corp (NYSE:WLL) is the most popular stock in this table. On the other hand Imperva Inc (NYSE:IMPV) is the least popular one with only 15 bullish hedge fund positions. GoPro Inc (NASDAQ:GPRO) 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 WLL might be a better candidate to consider a long position.

Disclosure: None

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