Hedge Funds Are Selling Lithia Motors Inc (LAD)

Judging by the fact that Lithia Motors Inc (NYSE:LAD) has witnessed falling interest from hedge fund managers, it’s safe to say that there exists a select few fund managers that elected to cut their positions entirely by the end of the third quarter. It’s worth mentioning that Malcolm Fairbairn’s Ascend Capital sold off the largest stake of all the investors followed by Insider Monkey, comprising about $30.6 million in stock, and Brandon Osten’s Venator Capital Management was right behind this move, as the fund dumped about $5 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Lithia Motors Inc (NYSE:LAD) but similarly valued. These stocks are Och-Ziff Capital Management Group LLC (NYSE:OZM), DiamondRock Hospitality Company (NYSE:DRH), Community Bank System, Inc. (NYSE:CBU), and ICU Medical, Incorporated (NASDAQ:ICUI). This group of stocks’ market caps are closest to LAD’s market cap.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $96 million. That figure was $329 million in LAD’s case. Och-Ziff Capital Management Group LLC (NYSE:OZM) is the most popular stock in this table. On the other hand Community Bank System, Inc. (NYSE:CBU) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Lithia Motors Inc (NYSE:LAD) 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.

Disclosure: None