Hedge Funds Are Still Selling Off SeaWorld Entertainment Inc (SEAS): No Hope for a Turnaround?

Judging by the fact that SeaWorld Entertainment Inc (NYSE:SEAS) has experienced falling interest from the smart money, it’s easy to see that there lies a certain “tier” of fund managers that decided to sell off their full holdings heading into Q4. Interestingly, Malcolm Fairbairn’s Ascend Capital cashed in the largest stake of the “upper crust” of funds monitored by Insider Monkey, worth close to $5.4 million in stock. Ira Unschuld’s fund, Brant Point Investment Management, also dumped its call options, about $1.5 million worth.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as SeaWorld Entertainment Inc (NYSE:SEAS) but similarly valued. We will take a look at CYS Investments Inc (NYSE:CYS), Guess?, Inc. (NYSE:GES), Petrobras Argentina SA ADR (NYSE:PZE), and Alliance Holdings GP, L.P. (NASDAQ:AHGP). This group of stocks’ market valuations match SEAS’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CYS 12 34791 4
GES 15 62779 4
PZE 8 10710 -1
AHGP 4 13161 -3

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $30 million. That figure was $106 million in SEAS’s case. Guess?, Inc. (NYSE:GES) is the most popular stock in this table. On the other hand Alliance Holdings GP, L.P. (NASDAQ:AHGP) is the least popular one with only 4 bullish hedge fund positions. SeaWorld Entertainment Inc (NYSE:SEAS) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on recently. In this regard GES might be a better candidate to consider taking a long position in.

Disclosure: None