Hedge Funds Aren’t Crazy About Select Medical Holdings Corporation (SEM) Anymore

Since Select Medical Holdings Corporation (NYSE:SEM) has experienced a decline in interest from the aggregate hedge fund industry, it’s easy to see that there exists a select few funds that slashed their positions entirely heading into Q4. Interestingly, Paul Marshall and Ian Wace’s Marshall Wace LLP said goodbye to the largest investment of the “upper crust” of funds tracked by Insider Monkey, totaling close to $11.8 million in stock, and John Overdeck and David Siegel’s Two Sigma Advisors was right behind this move, as the fund cut about $1.9 million worth of shares.

Let’s now review hedge fund activity in other stocks similar to Select Medical Holdings Corporation (NYSE:SEM). These stocks are Monogram Residential Trust Inc (NYSE:MORE), Nexstar Broadcasting Group, Inc. (NASDAQ:NXST), Inphi Corporation (NYSE:IPHI), and HNI Corp (NYSE:HNI). This group of stocks’ market values resemble SEM’s market value.

As you can see these stocks had an average of 27 hedge funds with bullish positions and the average amount invested in these stocks was $310 million. That figure was $412 million in SEM’s case. Nexstar Broadcasting Group, Inc. (NASDAQ:NXST) is the most popular stock in this table. On the other hand Monogram Residential Trust Inc (NYSE:MORE) is the least popular one with only 12 bullish hedge fund positions. Select Medical Holdings Corporation (NYSE:SEM) 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 NXST might be a better candidate to consider taking a long position in.

Disclosure: None