Hedge Funds Are Selling Off Iconix Brand Group Inc (ICON)

Because Iconix Brand Group Inc (NASDAQ:ICON) has experienced declining sentiment from the aggregate hedge fund industry, it’s safe to say that there exists a select few funds who were dropping their entire stakes by the end of the third quarter. Interestingly, Christian Leone’s Luxor Capital Group said goodbye to the largest stake of the 700 funds watched by Insider Monkey, comprising an estimated $19.9 million in stock. Renaissance Technologies also dumped its stock, about $8.9 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest was cut by 7 funds by the end of the third quarter.

Let’s check out hedge fund activity in other stocks similar to Iconix Brand Group Inc (NASDAQ:ICON). We will take a look at Ambac Financial Group, Inc. (NASDAQ:AMBC), Fabrinet (NYSE:FN), WL Ross Holding Corp (NASDAQ:WLRH), and Array Biopharma Inc (NASDAQ:ARRY). This group of stocks’ market values resemble Iconix Brand Group Inc’s market value.

As you can see these stocks had an average of 20.5 hedge funds with bullish positions and the average amount invested in these stocks was $175 million. That figure was $157 million in Iconix Brand Group Inc’s case. Ambac Financial Group, Inc. (NASDAQ:AMBC) is the most popular stock in this table. On the other hand WL Ross Holding Corp (NASDAQ:WLRH) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Iconix Brand Group Inc (NASDAQ:ICON) is even less popular than WL Ross, and sentiment has taken a big dive. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock and why there was a mass exodus from it during the third quarter.