Hedge Funds Are Selling Tanger Factory Outlet Centers Inc. (SKT)

Since Tanger Factory Outlet Centers Inc. (NYSE:SKT) has encountered falling interest from the smart money, logic holds that there lies a certain “tier” of money managers that decided to sell off their positions entirely heading into Q4. It’s worth mentioning that Israel Englander’s Millennium Management dropped the largest stake of all the hedgies tracked by Insider Monkey, valued at an estimated $1.4 million in stock. Glenn Russell Dubin’s fund, Highbridge Capital Management, also dropped its stock, about $1 million worth.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Tanger Factory Outlet Centers Inc. (NYSE:SKT) but similarly valued. We will take a look at Teledyne Technologies Incorporated (NYSE:TDY), Ritchie Bros. Auctioneers (USA) (NYSE:RBA), Aspen Technology, Inc. (NASDAQ:AZPN), and Compania Cervecerias Unidas S.A. (ADR) (NYSE:CCU). This group of stocks’ market caps are similar to SKT’s market cap.

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 $199 million. That figure was $138 million in SKT’s case. Aspen Technology, Inc. (NASDAQ:AZPN) is the most popular stock in this table. On the other hand Compania Cervecerias Unidas S.A. (ADR) (NYSE:CCU) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Tanger Factory Outlet Centers Inc. (NYSE:SKT) is even less popular than CCU. 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.

Disclosure: None