Seeing as InterNAP Network Services (NASDAQ:INAP) has experienced a declining sentiment from hedge fund managers, it’s safe to say that there lies a certain “tier” of funds that slashed their full holdings by the end of the third quarter. At the top of the heap, David Brown’s Hawk Ridge Management cut the largest stake of all the hedgies watched by Insider Monkey, worth an estimated $0.7 million in stock, and Israel Englander’s Millennium Management was right behind this move, as the fund dumped about $0.1 million worth. These transactions 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 – not necessarily in the same industry as InterNAP Network Services (NASDAQ:INAP) but similarly valued. We will take a look at Village Super Market, Inc. (NASDAQ:VLGEA), Independent Bank Corporation(MI) (NASDAQ:IBCP), Paratek Pharmaceuticals Inc (NASDAQ:PRTK), and SunOpta, Inc. (USA) (NASDAQ:STKL). This group of stocks’ market values are closest to INAP’s market value.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $77 million. That figure was $101 million in INAP’s case. SunOpta, Inc. (USA) (NASDAQ:STKL) is the most popular stock in this table. On the other hand Village Super Market, Inc. (NASDAQ:VLGEA) is the least popular one with only 6 bullish hedge fund positions. InterNAP Network Services (NASDAQ:INAP) 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 STKL might be a better candidate to consider a long position.