Hedge Funds Are Selling E Commerce China Dangdang Inc (ADR) (DANG)

Due to the fact that E Commerce China Dangdang Inc (ADR) (NYSE:DANG) has witnessed declining sentiment from the entirety of the hedge funds we track, it’s safe to say that there is a sect of fund managers that slashed their entire stakes in the third quarter. It’s worth mentioning that Daniel S. Och’s OZ Management sold off the largest investment of the “upper crust” of funds tracked by Insider Monkey, worth about $15 million in stock, and John Burbank’s Passport Capital was right behind this move, as the fund said goodbye to about $11 million worth. These moves are intriguing to say the least, as total hedge fund interest was cut by 6 funds in the third quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as E Commerce China Dangdang Inc (ADR) (NYSE:DANG) but similarly valued. These stocks are EPIQ Systems, Inc. (NASDAQ:EPIQ), Boot Barn Holdings Inc (NYSE:BOOT), Hanger Inc (NYSE:HGR), and PennantPark Investment Corp. (NASDAQ:PNNT). This group of stocks’ market values resemble DANG’s market value.

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 $38 million. That figure was $19 million in DANG’s case. EPIQ Systems, Inc. (NASDAQ:EPIQ) is the most popular stock in this table. On the other hand Boot Barn Holdings Inc (NYSE:BOOT) is the least popular one with only 7 bullish hedge fund positions. Even though E Commerce China Dangdang Inc (ADR) (NYSE:DANG) is not the least popular stock in this group, it has not attracted much attention from investors. Therefore, we’d rather spend our time researching stocks that hedge funds are collectively most bullish on. In this case, EPIQ might be a better alternative.