Hedge Funds Are Selling GNC Holdings Inc (GNC) Again

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Due to the fact that GNC Holdings Inc (NYSE:GNC) has faced declining sentiment from hedge fund managers, we can see that there is a sect of fund managers who sold off their positions entirely heading into Q4. Intriguingly, Dinakar Singh’s TPG-AXON Management LP dropped the largest investment of the “upper crust” of funds watched by Insider Monkey, worth an estimated $74.3 million in stock. John Burbank’s fund, Passport Capital, also cut its stock, about $24.3 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 3 funds heading into Q4.

Let’s go over hedge fund activity in other stocks similar to GNC Holdings Inc (NYSE:GNC). These stocks are Dean Foods Co (NYSE:DF), Party City Holdco Inc (NYSE:PRTY), Werner Enterprises, Inc. (NASDAQ:WERN), and Cambrex Corporation (NYSE:CBM). All of these stocks’ market caps match GNC’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
DF 20 152108 -1
PRTY 9 35917 2
WERN 15 80771 2
CBM 19 46595 2

As you can see these stocks had an average of 15.75 hedge funds with bullish positions and the average amount invested in these stocks was $79 million. That figure was $116 million in GNC’s case. Dean Foods Co (NYSE:DF) is the most popular stock in this table. On the other hand Party City Holdco Inc (NYSE:PRTY) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks GNC Holdings Inc (NYSE:GNC) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio, bearing in mind that ownership of it has fallen quite a lot in the last year.

Disclosure: None

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