Hedge Funds Are Selling Drew Industries, Inc. (DW)

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Judging by the fact that Drew Industries, Inc. (NYSE:DW) has witnessed falling interest from hedge fund managers, we can see that there exists a select few funds that decided to sell off their entire stakes by the end of the third quarter. It’s worth mentioning that Matthew Tewksbury’s Stevens Capital Management sold off the largest investment of the “upper crust” of funds followed by Insider Monkey, worth an estimated $0.7 million in stock, and Israel Englander’s Millennium Management was right behind this move, as the fund dropped about $0.6 million worth. These bearish behaviors are important to note, as total hedge fund interest dropped by 3 funds by the end of the third quarter.

Let’s go over hedge fund activity in other stocks similar to Drew Industries, Inc. (NYSE:DW). We will take a look at Renasant Corp. (NASDAQ:RNST), BlackRock Credit All Inc Trust IV (NYSE:BTZ), Noah Holdings Limited (ADR) (NYSE:NOAH), and PMC-Sierra Inc (NASDAQ:PMCS). This group of stocks’ market valuations match DW’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
RNST 10 47830 1
BTZ 8 26356 0
NOAH 7 28062 -3
PMCS 34 540004 7

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $161 million, which is higher than the $64 million in DW’s case. PMC-Sierra Inc (NASDAQ:PMCS) is the most popular stock in this table, while Noah Holdings Limited (ADR) (NYSE:NOAH) is the least popular one with only 7 bullish hedge fund positions. Drew Industries, Inc. (NYSE:DW) 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 PMCS might be a better candidate to consider a long position.

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