Because Companhia Siderurgica Nacional (ADR) (NYSE:SID) has witnessed a decline in interest from hedge fund managers, it’s safe to say that there exists a select few hedgies that elected to cut their positions entirely heading into Q4. At the top of the heap, Israel Englander’s Millennium Management dumped the biggest stake of the “upper crust” of funds tracked by Insider Monkey, comprising about $2.5 million in stock. Glenn Russell Dubin’s fund, Highbridge Capital Management, also dropped its stock, about $0.6 million worth. These bearish behaviors are interesting, as total hedge fund interest dropped by 4 funds heading into Q4.
Let’s now review hedge fund activity in other stocks similar to Companhia Siderurgica Nacional (ADR) (NYSE:SID). These stocks are Rent-A-Center Inc (NASDAQ:RCII), Nevro Corp (NYSE:NVRO), Surgical Care Affiliates Inc (NASDAQ:SCAI), and TeleTech Holdings, Inc. (NASDAQ:TTEC). All of these stocks’ market caps are similar to SID’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $137 million. That figure was just $1 million in SID’s case. Rent-A-Center Inc (NASDAQ:RCII) is the most popular stock in this table. On the other hand Surgical Care Affiliates Inc (NASDAQ:SCAI) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks Companhia Siderurgica Nacional (ADR) (NYSE:SID) is even less popular than SCAI. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.