Hedge Funds Are Losing Faith In Iconix Brand Group Inc (ICON)

Seeing as Iconix Brand Group Inc (NASDAQ:ICON) has faced declining sentiment from hedge fund managers, it’s easy to see that there were a few fund managers that slashed their positions entirely by the end of the third quarter. Intriguingly, Zeke Ashton’s Centaur Capital Partners dumped the largest stake of the “upper crust” of funds tracked by Insider Monkey, valued at about $2.9 million in stock. Neil Chriss’ fund, Hutchin Hill Capital, also dropped its stock, about $0.9 million worth.

Let’s now review hedge fund activity in other stocks similar to Iconix Brand Group Inc (NASDAQ:ICON). We will take a look at Ocwen Financial Corporation (NYSE:OCN), Boulevard Acquisition Corp II (NASDAQ:BLVD), Catchmark Timber Trust Inc (NYSE:CTT), and NewStar Financial Inc (NASDAQ:NEWS). All of these stocks’ market caps are closest to ICON’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
OCN 17 62994 1
BLVD 11 146114 0
CTT 13 34095 2
NEWS 4 118119 0

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $90 million. That figure was $76 million in ICON’s case. Ocwen Financial Corporation (NYSE:OCN) is the most popular stock in this table. On the other hand NewStar Financial Inc (NASDAQ:NEWS) is the least popular one with only 4 bullish hedge fund positions. Iconix Brand Group Inc (NASDAQ:ICON) 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 OCN might be a better candidate to consider taking a long position in.

Disclosure: None