Hedge Funds Are Selling On Deck Capital Inc (ONDK)

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Due to the fact that On Deck Capital Inc (NYSE:ONDK) has witnessed a falling interest from the aggregate hedge fund industry, logic holds that there were a few funds that elected to cut their entire stakes in the third quarter. Intriguingly, Ken Griffin’s Citadel Investment Group said goodbye to the biggest investment of the 700 funds followed by Insider Monkey, valued at an estimated $1.1 million in stock. Andrew Sandler’s fund, Sandler Capital Management, also dumped its stock, about $0.9 million worth of shares. These bearish behaviors are interesting, as aggregate hedge fund interest fell by 3 funds in the third quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as On Deck Capital Inc (NYSE:ONDK) but similarly valued. These stocks are Tsakos Energy Navigation Ltd. (NYSE:TNP), Genomic Health, Inc. (NASDAQ:GHDX), Oritani Financial Corp. (NASDAQ:ORIT), and Wingstop Inc (NASDAQ:WING). This group of stocks’ market valuations are similar to On Deck Capital Inc (NYSE:ONDK)’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TNP 19 112951 3
GHDX 13 404189 -2
ORIT 12 40620 -1
WING 10 21395 -4

As you can see, these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $145 million. That figure was $170 million in On Deck Capital Inc (NYSE:ONDK)’s case. Tsakos Energy Navigation Ltd. (NYSE:TNP) is the most popular stock in this table. On the other hand, Wingstop Inc (NASDAQ:WING) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks, On Deck Capital Inc (NYSE:ONDK) is even less popular than Wingstop Inc (NASDAQ:WING). 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. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case, more research is warranted.

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