Hedge Funds Are Slamming the Door on Masonite International Corp (DOOR)

Because Masonite International Corp (NYSE:DOOR) has experienced bearish sentiment from the entirety of the hedge funds we track, we can see that there lies a certain “tier” of funds who sold off their positions entirely by the end of the third quarter. It’s worth mentioning that Dinakar Singh’s TPG-AXON Management LP dumped the biggest position of all the hedgies watched by Insider Monkey, totaling an estimated $24.4 million in stock, and Principal Global Investors’s Columbus Circle Investors was right behind this move, as the fund dropped about $10.8 million worth of shares. These moves are interesting, as total hedge fund interest fell by 6 funds by the end of the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Masonite International Corp (NYSE:DOOR) but similarly valued. These stocks are Noble Corporation (NYSE:NE), MicroStrategy Incorporated (NASDAQ:MSTR), Rexnord Corp (NYSE:RXN), and Watts Water Technologies Inc (NYSE:WTS). This group of stocks’ market valuations are similar to DOOR’s market valuation.

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 $302 million. That figure was $340 million in DOOR’s case. Noble Corporation (NYSE:NE) is the most popular stock in this table. On the other hand Watts Water Technologies Inc (NYSE:WTS) is the least popular one with only 11 bullish hedge fund positions. Masonite International Corp (NYSE:DOOR) 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 NE might be a better candidate to consider a long position in.

Disclosure: None