Hedge Fund Sentiment Is Stagnant On Deluxe Corporation (DLX)

Since Deluxe Corporation (NYSE:DLX) has experienced a declination in interest from the aggregate hedge fund industry, it’s safe to say that there is a sect of funds that slashed their full holdings last quarter. Intriguingly, Neil Chriss’ Hutchin Hill Capital dumped the biggest investment of the 700 funds tracked by Insider Monkey, valued at an estimated $2.4 million in stock, and D. E. Shaw’s D E Shaw was right behind this move, as the fund cut about $0.4 million worth of shares. These bearish behaviors are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Deluxe Corporation (NYSE:DLX) but similarly valued. We will take a look at Emcor Group Inc (NYSE:EME), Rayonier Inc. (NYSE:RYN), BBVA Banco Frances S.A. (ADR) (NYSE:BFR), and Ritchie Bros. Auctioneers (USA) (NYSE:RBA). This group of stocks’ market caps match DLX’s market cap.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $239 million, compared to $148 million in DLX’s case. Ritchie Bros. Auctioneers (USA) (NYSE:RBA) is the most popular stock in this table with 24 funds reporting long positions, while BBVA Banco Frances S.A. (ADR) (NYSE:BFR) is the least popular one. Compared to these stocks, Deluxe Corporation (NYSE:DLX) 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.