Hedge Funds Are Dumping Deluxe Corporation (DLX)

Because Deluxe Corporation (NYSE:DLX) has witnessed bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there is a sect of funds that elected to cut their full holdings in the third quarter. It’s worth mentioning that Matthew Tewksbury’s Stevens Capital Management cashed in the largest position of all the investors monitored by Insider Monkey, valued at about $1.5 million in stock. Joshua Packwood and Schuster Tanger’s fund, Radix Partners, also dumped its stock, about $0.4 million worth of DLX shares.

Let’s go over hedge fund activity in other stocks similar to Deluxe Corporation (NYSE:DLX). These stocks are Companhia Energetica Minas Gerais (ADR) (NYSE:CIG), Cantel Medical Corp. (NYSE:CMN), American Eagle Outfitters (NYSE:AEO), and Brookdale Senior Living, Inc. (NYSE:BKD). This group of stocks’ market values are similar to DLX’s market value.

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $361 million. That figure was $87 million in DLX’s case. Brookdale Senior Living, Inc. (NYSE:BKD) is the most popular stock in this table. On the other hand Companhia Energetica Minas Gerais (ADR) (NYSE:CIG) is the least popular one with only 13 bullish hedge fund positions. Deluxe Corporation (NYSE:DLX) 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 BKD might be a better candidate to consider taking a long position in.

Disclosure: none.