Hedge Funds Are Selling WisdomTree Investments, Inc. (WETF)

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Since WisdomTree Investments, Inc. (NASDAQ:WETF) has faced falling interest from the aggregate hedge fund industry, it’s easy to see that there were a few funds who sold off their full holdings last quarter. It’s worth mentioning that Renaissance Technologies sold off the biggest stake of the 700 funds watched by Insider Monkey, valued at an estimated $9.6 million in stock, and Steve Cohen’s Point72 Asset Management was right behind this move, as the fund dumped about $3.8 million worth of shares. These moves are important to note, as aggregate hedge fund interest was cut by 3 funds last quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as WisdomTree Investments, Inc. (NASDAQ:WETF) but similarly valued. We will take a look at PNM Resources, Inc. (NYSE:PNM), Sothebys (NYSE:BID), Brandywine Realty Trust (NYSE:BDN), and The Geo Group, Inc. (NYSE:GEO). This group of stocks’ market values match WETF’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PNM 13 200593 -4
BID 31 899299 4
BDN 17 152885 1
GEO 16 72961 -2

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $331 million. That figure was $61 million in WETF’s case. Sothebys (NYSE:BID) is the most popular stock in this table. On the other hand PNM Resources, Inc. (NYSE:PNM) is the least popular one with only 13 bullish hedge fund positions. WisdomTree Investments, Inc. (NASDAQ:WETF) 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 BID might be a better candidate to consider a long position.

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