Hedge Funds Aren’t Crazy About Alamo Group, Inc. (ALG) Anymore

Since Alamo Group, Inc. (NYSE:ALG) has witnessed falling interest from the smart money, we can see that there lies a certain “tier” of hedgies that elected to cut their positions entirely heading into Q4. It’s worth mentioning that Israel Englander’s Millennium Management sold off the biggest investment of the “upper crust” of funds tracked by Insider Monkey, totaling an estimated $0.8 million in stock, and Roger Ibbotson’s Zebra Capital Management was right behind this move, as the fund cut about $0.5 million worth of shares. These moves are important to note, as aggregate hedge fund interest fell by 2 funds heading into Q4.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Alamo Group, Inc. (NYSE:ALG) but similarly valued. These stocks are CoBiz Financial Inc (NASDAQ:COBZ), Frontline Ltd (NYSE:FRO), The Marcus Corporation (NYSE:MCS), and Haverty Furniture Companies, Inc. (NYSE:HVT). All of these stocks’ market caps match ALG’s market cap.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $37 million, which is lower than the $145 million in ALG’s case. Frontline Ltd (NYSE:FRO) is the most popular stock in this table, while CoBiz Financial Inc (NASDAQ:COBZ) is the least popular one with only 6 bullish hedge fund positions. Alamo Group, Inc. (NYSE:ALG) is not the least popular stock in this group, but hedge fund interest is significantly lower 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 FRO might be a better candidate to consider a long position.