Hedge Fund Sentiment for Cinemark Holdings, Inc. (CNK) Going Nowhere

Because Cinemark Holdings, Inc. (NYSE:CNK) has experienced declining sentiment from the smart money, it’s safe to say that there lies a certain “tier” of funds who sold off their full holdings in the third quarter. It’s worth mentioning that Joel Greenblatt’s Gotham Asset Management dropped the biggest stake of the “upper crust” of funds tracked by Insider Monkey, comprising an estimated $2.3 million in stock. Bruce Kovner’s fund, Caxton Associates LP, also cut its stock, about $1.6 million worth. These moves are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s check out hedge fund activity in other stocks similar to Cinemark Holdings, Inc. (NYSE:CNK). We will take a look at Amsurg Corp (NASDAQ:AMSG), Restoration Hardware Holdings Inc (NYSE:RH), Sally Beauty Holdings, Inc. (NYSE:SBH), and Scotts Miracle-Gro Co (NYSE:SMG). This group of stocks’ market valuations are closest to CNK’s market valuation.

As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $554 million. That figure was $274 million in CNK’s case. Restoration Hardware Holdings Inc (NYSE:RH) is the most popular stock in this table. On the other hand Amsurg Corp (NASDAQ:AMSG) is the least popular one with only 22 bullish hedge fund positions. Compared to these stocks Cinemark Holdings, Inc. (NYSE:CNK) is even less popular than AMSG. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock.