Because The Geo Group, Inc. (NYSE:GEO) has experienced falling interest from the entirety of the hedge funds we track, it’s easy to see that there exists a select few hedgies who sold off their entire stakes in the third quarter. At the top of the heap, John Overdeck and David Siegel’s Two Sigma Advisors said goodbye to the biggest position of the “upper crust” of funds monitored by Insider Monkey, comprising an estimated $3.5 million in stock, and David Costen Haley’s HBK Investments was right behind this move, as the fund cut about $0.8 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest was cut by 2 funds in the third quarter.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as The Geo Group, Inc. (NYSE:GEO) but similarly valued. We will take a look at DiamondRock Hospitality Company (NYSE:DRH), Euronav NV Ordinary Shares (NYSE:EURN), QEP Resources Inc (NYSE:QEP), and Valmont Industries, Inc. (NYSE:VMI). This group of stocks’ market values are similar to GEO’s market value.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 18.25 hedge funds with bullish positions and the average amount invested in these stocks was $266 million. That figure was $73 million in GEO’s case. Euronav NV Ordinary Shares (NYSE:EURN) is the most popular stock in this table. On the other hand DiamondRock Hospitality Company (NYSE:DRH) is the least popular one with only 13 bullish hedge fund positions. The Geo Group, Inc. (NYSE:GEO) 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 EURN might be a better candidate to consider a long position.