Hedge Fund Data Suggest You Should Go Long One of These Two Monday Losers

As aforementioned, Caesarstone Sdot-Yam Ltd (NASDAQ:CSTE)’s stock has been weighed down today by the announcement that its Board of Directors has lost another member. According to the firm, Director Avner Naveh has resigned from the board effective immediately, due to a difference of opinion regarding the board’s tasks and decisions. Naveh is allied with Kibbutz Sdot Yam, owner of over 32% of all Caesarstone ordinary shares. The resignation follows the leaving of Director Ram Belinkov, who said that he was leaving the board because his views opposed the board’s in terms of board governance and the granting of options to the firm’s Chief Executive Officer, Yosef Shiran.

Hedge funds appear to have seen this coming trouble for Caesarstone Sdot-Yam Ltd (NASDAQ:CSTE) as there was an outflow of capital from the stock in the second quarter. While the number of hedge funds with long positions in increased by one to 17, the value of their holdings only increased by 6.42% to $183.56 million, amid a 12.90% jump of the stock’s price during the period. This way, hedge funds owned 7.60% of Caesarstone at the end of June. Robert Bishop’s Impala Asset Management reduced its stake in Ceasarstone by 88,108 shares in the second quarter, ending June with 549,075 shares of the firm.

Disclosure: none