Hedge Funds Are Dumping Lincoln Educational Services Corporation (LINC)

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: PEAK6 Capital Management. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because none of the 700+ hedge funds tracked by Insider Monkey identified LINC as a viable investment and initiated a position in the stock.

Let’s check out hedge fund activity in other stocks similar to Lincoln Educational Services Corporation (NASDAQ:LINC). We will take a look at Forbes Energy Services Ltd. (NASDAQ:FES), MELA Sciences Inc (NASDAQ:MELA), Wave Systems Corp. (NASDAQ:WAVX), and Essex Rental Corp. (NASDAQ:ESSX). This group of stocks’ market caps resemble LINC’s market cap.

As you can see these stocks had an average of 4 hedge funds with bullish positions and the average amount invested in these stocks was just $1 million. That figure was $2 million in LINC’s case. Essex Rental Corp. (NASDAQ:ESSX) is the most popular stock in this table. On the other hand Forbes Energy Services Ltd. (NASDAQ:FES) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Lincoln Educational Services Corporation (NASDAQ:LINC) 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.