Hedge Funds Aren’t Crazy About GULF COAST ULTRA DEEP RTY TR (GULTU) Anymore

Because GULF COAST ULTRA DEEP RTY TR (OTCMKTS:GULTU) has faced falling interest from the aggregate hedge fund industry, we can see that there lies a certain “tier” of hedge funds that elected to cut their positions entirely heading into Q4. Interestingly, Jamie Zimmerman’s Litespeed Management dropped the biggest investment of all the hedgies monitored by Insider Monkey, worth about $2.9 million in stock, and John Paulson’s Paulson & Co was right behind this move, as the fund said goodbye to about $1.5 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as GULF COAST ULTRA DEEP RTY TR (OTCMKTS:GULTU) but similarly valued. These stocks are Ballantyne Strong Inc (NYSEMKT:BTN), OncoGenex Pharmaceuticals Inc (NASDAQ:OGXI), Verastem Inc (NASDAQ:VSTM), and The Bon-Ton Stores, Inc. (NASDAQ:BONT). This group of stocks’ market caps are similar to GULTU’s market cap.

As you can see these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $10 million. That figure was $21 million in GULTU’s case. The Bon-Ton Stores, Inc. (NASDAQ:BONT) is the most popular stock in this table. On the other hand Ballantyne Strong Inc (NYSEMKT:BTN) and Verastem Inc (NASDAQ:VSTM) are the least popular ones with only 4 bullish hedge fund positions. Compared to these stocks GULF COAST ULTRA DEEP RTY TR (OTCMKTS:GULTU) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in more detail.