Seeing as Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) has sustained declining sentiment from the smart money, it’s safe to say that there were a few fund managers who sold off their entire stakes by the end of the third quarter. It’s worth mentioning that Steve Cohen’s Point72 Asset Management dropped the biggest investment of the “upper crust” of funds followed by Insider Monkey, comprising about $15.1 million in stock. Paul Hondros’s fund, AlphaOne Capital Partners, also dumped its stock, about $3 million worth.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) but similarly valued. We will take a look at Seabridge Gold, Inc. (USA) (NYSE:SA), 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS), Novanta Inc (USA) (NASDAQ:NOVT), and Altisource Portfolio Solutions S.A. (NASDAQ:ASPS). This group of stocks’ market caps match RRGB’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 12.5 hedge funds with bullish positions and the average amount invested in these stocks was $54 million. That figure was $41 million in RRGB’s case. Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) is the most popular stock in this table. On the other hand Seabridge Gold, Inc. (USA) (NYSE:SA) is the least popular one with only 6 bullish hedge fund positions. Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) 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 ASPS might be a better candidate to consider taking a long position in.