Hedge Funds Are Dumping Sturm Ruger & Company (RGR)

Since Sturm Ruger & Company (NYSE:RGR) has faced a decline in interest from the aggregate hedge fund industry, we can see that there were a few money managers who were dropping their entire stakes last quarter. It’s worth mentioning that Peter Muller’s PDT Partners got rid of the biggest stake of the 700 funds tracked by Insider Monkey, worth an estimated $2.2 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund sold off about $1.4 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Sturm Ruger & Company (NYSE:RGR) but similarly valued. We will take a look at Knowles Corp (NYSE:KN), Neenah Paper, Inc. (NYSE:NP), Abercrombie & Fitch Co. (NYSE:ANF), and BroadSoft Inc (NASDAQ:BSFT). This group of stocks’ market values are closest to RGR’s market value.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $97 million. That figure was $77 million in RGR’s case. Abercrombie & Fitch Co. (NYSE:ANF) is the most popular stock in this table. On the other hand Neenah Paper, Inc. (NYSE:NP) is the least popular one with only 10 bullish hedge fund positions. Sturm Ruger & Company (NYSE:RGR) 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 ANF might be a better candidate to consider taking a long position in.

Disclosure: None