We view hedge fund activity in the stock as unfavorable, but in this case there was only a single hedge fund selling its entire position: Highbridge 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 only one of the 700+ hedge funds tracked by Insider Monkey identified it as a viable investment and initiated a position in the stock (that fund was Millennium Management).
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Hooker Furniture Corporation (NASDAQ:HOFT) but similarly valued. We will take a look at Oxford Immunotec Global PLC (NASDAQ:OXFD), Community Healthcare Trust Inc (NYSE:CHCT), InVitae Corp (NYSE:NVTA), and First Connecticut Bancorp Inc (NASDAQ:FBNK). This group of stocks’ market values match HOFT’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| OXFD | 9 | 58923 | 2 |
| CHCT | 9 | 27828 | 0 |
| NVTA | 8 | 98771 | 0 |
| FBNK | 7 | 24519 | -5 |
As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $53 million. That figure was $68 million in HOFT’s case. Oxford Immunotec Global PLC (NASDAQ:OXFD) is the most popular stock in this table. On the other hand First Connecticut Bancorp Inc (NASDAQ:FBNK) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Hooker Furniture Corporation (NASDAQ:HOFT) 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.
Disclosure: None
