Hedge Fund Metric Says Not To Expect Much From These Moving Stocks

Before today’s news, Lumber Liquidators Holdings Inc (NYSE:LL)‘s shares were down by 78% year-to-date, as fewer customers frequented the company’s stores and legal uncertainty hovered around the stock. By admitting that it violated the Lacey Act and paying a cumulative $10 million fine, management is removing legal uncertainty so that it can focus on winning back its customers. Management still needs to handle its formaldehyde laminate flooring issue, however.

According to our data, hedge funds are bearish on Lumber Liquidators Holdings Inc (NYSE:LL). A total of 14 funds reported stakes worth $69.57 million, representing 12.40% of the float, in the previous round of 13F filings, down from 28 funds and $195.75 million respectively a quarter earlier. 45% of the float is short. Daniel Gold‘s QVT Financial raised its stake by 92% to 1.09 million shares but also increased its put options position by 26% to 2.65 million underlying shares.

Disclosure: None