Hedge Funds Are Overweight New Media Investment Group Inc (NEWM)

Seeing as New Media Investment Group Inc (NYSE:NEWM) has faced a declination in interest from hedge fund managers, we can see that there is a sect of fund managers who sold off their positions entirely heading into Q4. It’s worth mentioning that Spencer M. Waxman’s Shannon River Fund Management sold off the biggest stake of the “upper crust” of funds followed by Insider Monkey, comprising close to $21.1 million in stock, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital was right behind this move, as the fund dropped about $2.8 million worth of shares. These moves are important to note, as total hedge fund interest was cut by 2 funds heading into Q4.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as New Media Investment Group Inc (NYSE:NEWM) but similarly valued. These stocks are Customers Bancorp Inc (NASDAQ:CUBI), HealthStream, Inc. (NASDAQ:HSTM), IntelliPharmaCeutics International Inc. (TSE:I), and Atrion Corporation (NASDAQ:ATRI). This group of stocks’ market valuations are closest to New Media Investment Group Inc’s market valuation.

As you can see these stocks had an average of 10.75 hedge funds with bullish positions and the average amount invested in these stocks was $37 million. That figure was $112 million in New Media Investment Group Inc’s case. HealthStream, Inc. (NASDAQ:HSTM) is the most popular stock in this table. On the other hand Atrion Corporation (NASDAQ:ATRI) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks New Media Investment Group Inc (NYSE:NEWM) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers and have far more money invested in it, it may be a good idea to analyze it in detail and potentially include it in your portfolio.