Hedge Funds Aren’t Crazy About FXCM Inc (FXCM) Anymore

Because FXCM Inc (NYSE:FXCM) has experienced a bearish sentiment from the entirety of the hedge funds we track, logic holds that there is a sect of funds that decided to sell off their full holdings in the third quarter. It’s worth mentioning that Ari Zweiman’s 683 Capital Partners dropped the biggest investment of the 700 funds tracked by Insider Monkey, worth about $0.6 million in stock. Cliff Asness’ fund, AQR Capital Management, also dropped its stock, about $0.3 million worth of shares. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 3 funds in the third quarter.

Let’s check out hedge fund activity in other stocks similar to FXCM Inc (NYSE:FXCM). We will take a look at Innovative Solutions & Support Inc (NASDAQ:ISSC), Mitcham Industries, Inc. (NASDAQ:MIND), CymaBay Therapeutics Inc (NASDAQ:CBAY), and Female Health Company (NASDAQ:FHCO). This group of stocks’ market caps resemble FXCM Inc (NYSE:FXCM)’s market cap.

As you can see, these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $8 million. That figure was $5 million in FXCM Inc (NYSE:FXCM)’s case. CymaBay Therapeutics Inc (NASDAQ:CBAY) is the most popular stock in this table. On the other hand, Innovative Solutions & Support Inc (NASDAQ:ISSC) is the least popular one with only 4 bullish hedge fund positions. FXCM Inc (NYSE:FXCM) 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, CymaBay Therapeutics Inc (NASDAQ:CBAY) might be a better candidate to consider a long position.