Hedge Funds Are Ditching Globus Medical Inc (GMED): Have They Uncovered Something You Haven’t?

Since Globus Medical Inc (NYSE:GMED) has gone through falling interest from the smart money, logic holds that there was a specific group of funds that elected to cut their entire stakes by the end of the third quarter. Interestingly, Amy Minella’s Cardinal Capital dropped the biggest stake of all the hedgies watched by Insider Monkey, comprising an estimated $17.9 million in stock. Robert B. Gillam’s fund, McKinley Capital Management, also cut its stock, about $7.4 million worth.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Globus Medical Inc (NYSE:GMED) but similarly valued. These stocks are ACI Worldwide Inc (NASDAQ:ACIW), Alamos Gold Inc (NYSE:AGI), Autohome Inc (ADR) (NYSE:ATHM), and AVX Corporation (NYSE:AVX). All of these stocks’ market caps are similar to GMED’s market cap.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $155 million. That figure was $116 million in GMED’s case. AVX Corporation (NYSE:AVX) is the most popular stock in this table. On the other hand ACI Worldwide Inc (NASDAQ:ACIW) is the least popular one with only 11 bullish hedge fund positions. Globus Medical Inc (NYSE:GMED) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard AVX might be a better candidate to consider taking a long position in.

Disclosure: None