Hedge Funds Aren’t Crazy About Arctic Cat Inc (ACAT) Anymore

Because Arctic Cat Inc (NASDAQ:ACAT) has faced a declining sentiment from the entirety of the hedge funds we track, logic holds that there was a specific group of hedge funds who were dropping their entire stakes in the third quarter. At the top of the heap, Ira Unschuld’s Brant Point Investment Management sold off the biggest stake of the “upper crust” of funds monitored by Insider Monkey, comprising an estimated $2.5 million in stock.

Let’s also examine hedge fund activity in other stocks similar to Arctic Cat Inc (NASDAQ:ACAT). We will take a look at Pace Holdings Corp (NASDAQ:PACE), Bank of Marin Bancorp (NASDAQ:BMRC), The Bancorp, Inc. (NASDAQ:TBBK), and NQ Mobile Inc (ADR) (NYSE:NQ). This group of stocks’ market values match ACAT’s market value.

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 $60 million, compared to $19 million in ACAT’s case. Pace Holdings Corp (NASDAQ:PACE) is the most popular stock in this table. On the other hand Bank of Marin Bancorp (NASDAQ:BMRC) is the least popular one with only 4 bullish hedge fund positions. Arctic Cat Inc (NASDAQ:ACAT) 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 PACE might be a better candidate to consider a long position.