Hedge Funds Are Selling RPM International Inc. (RPM)

Judging by the fact that RPM International Inc. (NYSE:RPM) has witnessed a falling interest from hedge fund managers, it’s safe to say that there were a few hedge funds who sold off their positions entirely by the end of the third quarter. It’s worth mentioning that Jonathan Barrett and Paul Segal’s Luminus Management dropped the biggest position of the 700 funds watched by Insider Monkey, valued at close to $14.2 million in stock, and Phill Gross and Robert Atchinson’s Adage Capital Management was right behind this move, as the fund sold off about $9.8 million worth of shares. These transactions are intriguing to say the least, as aggregate hedge fund interest was cut by 5 funds by the end of the third quarter.

Let’s go over hedge fund activity in other stocks similar to RPM International Inc. (NYSE:RPM). We will take a look at Jack Henry & Associates, Inc. (NASDAQ:JKHY), DDR Corp (NYSE:DDR), Frontier Communications Corp (NASDAQ:FTR), and CBOE Holdings, Inc (NASDAQ:CBOE). This group of stocks’ market caps matches RPM International Inc. (NYSE:RPM)’s market cap.

As you can see, these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $326 million. That figure was $75 million in RPM International Inc. (NYSE:RPM)’s case. Frontier Communications Corp (NASDAQ:FTR) is the most popular stock in this table. On the other hand, DDR Corp (NYSE:DDR) is the least popular one with only 16 bullish hedge fund positions. RPM International Inc. (NYSE:RPM) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, Frontier Communications Corp (NASDAQ:FTR) might be a better candidate to consider a long position.