Hedge Funds Aren’t Crazy About FTI Consulting, Inc. (FCN) Anymore: What Has Them Spooked?

Judging by the fact that FTI Consulting, Inc. (NYSE:FCN) has weathered bearish sentiment from hedge fund managers, it’s safe to say that there is a sect of funds that slashed their full holdings heading into Q4. Interestingly, Robert Vollero and Gentry T. Beach’s Vollero Beach Capital Partners got rid of the largest investment of the 700 funds watched by Insider Monkey, totaling an estimated $3.7 million in stock. David Charney and Sky Wilber’s fund, Foundation Asset Management, also dumped its stock, about $3.2 million worth.

Let’s now review hedge fund activity in other stocks similar to FTI Consulting, Inc. (NYSE:FCN). We will take a look at Oasis Petroleum Inc. (NYSE:OAS), Main Street Capital Corporation (NYSE:MAIN), Silicon Motion Technology Corp. (ADR) (NASDAQ:SIMO), and WD-40 Company (NASDAQ:WDFC). This group of stocks’ market valuations are closest to FCN’s market valuation.

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $245 million. That figure was $53 million in FCN’s case. Oasis Petroleum Inc. (NYSE:OAS) is the most popular stock in this table. On the other hand Main Street Capital Corporation (NYSE:MAIN) is the least popular one with only 8 bullish hedge fund positions. FTI Consulting, Inc. (NYSE:FCN) 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 OAS might be a better candidate to consider taking a long position in.

Disclosure: None