Hedge Funds Aren’t Banking On PennyMac Mortgage Investment Trust (PMT)

Since PennyMac Mortgage Investment Trust (NYSE:PMT) has witnessed falling interest from the entirety of the hedge funds we track, logic holds that there lies a certain “tier” of hedgies who were dropping their full holdings in the third quarter. Interestingly, Gregg Moskowitz’s Interval Partners got rid of the biggest investment of the “upper crust” of funds studied by Insider Monkey, totaling about $3.6 million in stock, and Eric Halet and Davide Serra’s Algebris Investments was right behind this move, as the fund dropped about $1.9 million worth of shares.

Let’s also examine hedge fund activity in other stocks similar to PennyMac Mortgage Investment Trust (NYSE:PMT). These stocks are Fortuna Silver Mines Inc. (NYSE:FSM), Aerie Pharmaceuticals Inc (NASDAQ:AERI), James River Group Holdings Ltd (NASDAQ:JRVR), and Amicus Therapeutics, Inc. (NASDAQ:FOLD). This group of stocks’ market valuations resemble PMT’s market valuation.

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 $334 million. That figure was $38 million in PMT’s case. Aerie Pharmaceuticals Inc (NASDAQ:AERI) is the most popular stock in this table. On the other hand Fortuna Silver Mines Inc. (NYSE:FSM) is the least popular one with only 11 bullish hedge fund positions. PennyMac Mortgage Investment Trust (NYSE:PMT) 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 AERI might be a better candidate to consider taking a long position in.

Disclosure: None