Hedge Funds Are Selling Darling International Inc. (DAR)

Due to the fact that Darling International Inc. (NYSE:DAR) has experienced declining sentiment from the aggregate hedge fund industry, it’s safe to say that there exists a select few money managers who sold off their entire stakes last quarter. Interestingly, Steve Cohen’s Point72 Asset Management sold off the largest stake of all the hedgies followed by Insider Monkey, totaling close to $15.5 million in stock, and Paul Marshall and Ian Wace’s Marshall Wace LLP was right behind this move, as the fund dumped about $9.6 million worth of shares. These moves are important to note, as aggregate hedge fund interest dropped by 6 funds last quarter.

Let’s check out hedge fund activity in other stocks similar to Darling International Inc. (NYSE:DAR). We will take a look at The Timken Company (NYSE:TKR), Mack Cali Realty Corp (NYSE:CLI), Zendesk Inc (NYSE:ZEN), and Cirrus Logic, Inc. (NASDAQ:CRUS). This group of stocks’ market caps are closest to DAR’s market cap.

As you can see these stocks had an average of 22.75 hedge funds with bullish positions and the average amount invested in these stocks was $191 million. That figure was $291 million in DAR’s case. Cirrus Logic, Inc. (NASDAQ:CRUS) is the most popular stock in this table. On the other hand Mack Cali Realty Corp (NYSE:CLI) is the least popular one with only 10 bullish hedge fund positions. Darling International Inc. (NYSE:DAR) 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 CRUS might be a better candidate to consider for a long position.

Disclosure: None