Due to the fact that Pacific Sunwear of California, Inc. (NASDAQ:PSUN) has faced a decline in interest from the aggregate hedge fund industry, we can see that there exists a select few funds that sold off their full holdings last quarter. Among them, Chuck Royce’s Royce & Associates said goodbye to the largest stake of the “upper crust” of funds followed by Insider Monkey, totaling close to $1.4 million in stock. Gavin Saitowitz and Cisco J. del Valle’s fund, Springbok Capital, also dumped its position, worth about $0.1 million.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Pacific Sunwear of California, Inc. (NASDAQ:PSUN) but similarly valued. These stocks are Paragon Offshore PLC (NYSE:PGN), Amedica Corporation (NASDAQ:AMDA), ParkerVision, Inc. (NASDAQ:PRKR), and Evoke Pharma Inc (NASDAQ:EVOK). This group of stocks’ market valuations resemble PSUN’s market valuation.
Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
---|---|---|---|
PGN | 8 | 977 | -3 |
AMDA | 4 | 1252 | -1 |
PRKR | 5 | 643 | -1 |
EVOK | 4 | 1107 | 1 |
As you can see these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was just $1 million, which is lower than the $3 million in PSUN’s case. Paragon Offshore PLC (NYSE:PGN) is the most popular stock in this table. On the other hand Amedica Corporation (NASDAQ:AMDA) is the least popular one with only 4 bullish hedge fund positions. Pacific Sunwear of California, Inc. (NASDAQ:PSUN) 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 PGN might be a better candidate to consider a long position.