Hedge Funds Aren’t Crazy About Bridgepoint Education Inc (BPI) Anymore

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Due to the fact that Bridgepoint Education Inc (NYSE:BPI) has witnessed bearish sentiment from the aggregate hedge fund industry, it’s easy to see that there were a few money managers who sold off their full holdings heading into Q4. At the top of the heap, Brian C. Freckmann’s Lyon Street Capital dumped the biggest position of all the hedgies tracked by Insider Monkey, totaling close to $1.9 million in call options. Nantahala Capital Management, also sold off its call options, about $0.6 million worth.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Bridgepoint Education Inc (NYSE:BPI) but similarly valued. These stocks are LinnCo LLC (NASDAQ:LNCO), Pfenex Inc (NYSEMKT:PFNX), Kimball Electronics Inc (NASDAQ:KE), and Ocular Therapeutix Inc (NASDAQ:OCUL). This group of stocks’ market valuations are similar to BPI’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
LNCO 13 10754 5
PFNX 10 46939 2
KE 10 24047 1
OCUL 12 39161 -2

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 $30 million. That figure was $39 million in BPI’s case. LinnCo LLC (NASDAQ:LNCO) is the most popular stock in this table. On the other hand Pfenex Inc (NYSEMKT:PFNX) is the least popular one with only 10 bullish hedge fund positions. Bridgepoint Education Inc (NYSE:BPI) registers a hedge fund interest level close to 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 LNCO might be a better candidate to consider a long position.

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