Since RBC Bearings Incorporated (NASDAQ:ROLL) has witnessed falling interest from the entirety of the hedge funds we track, it’s safe to say that there were a few money managers that elected to cut their positions entirely in the third quarter. Intriguingly, Joel Greenblatt’s Gotham Asset Management dropped the biggest stake of the 700 funds monitored by Insider Monkey, comprising close to $4.2 million in stock, and Peter Muller’s PDT Partners was right behind this move, as the fund dumped about $0.5 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest fell by 5 funds in the third quarter.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as RBC Bearings Incorporated (NASDAQ:ROLL) but similarly valued. These stocks are Capital Bank Financial Corp (NASDAQ:CBF), Headwaters Inc (NYSE:HW), ClubCorp Holdings Inc (NYSE:MYCC), and Park National Corporation (NYSEAMEX:PRK). All of these stocks’ market caps resemble ROLL’s market cap.
|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 14.25 hedge funds with bullish positions and the average amount invested in these stocks was $110 million. That figure was $79 million in ROLL’s case. Headwaters Inc (NYSE:HW) is the most popular stock in this table. On the other hand Capital Bank Financial Corp (NASDAQ:CBF) is the least popular one with only 5 bullish hedge fund positions. RBC Bearings Incorporated (NASDAQ:ROLL) 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 HW might be a better candidate to consider a long position.