Hedge Funds Aren’t Crazy About Six Flags Entertainment Corp (SIX) Anymore

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Since Six Flags Entertainment Corp (NYSE:SIX) has witnessed falling interest from the smart money, it’s safe to say that there exists a select few funds that decided to sell off their full holdings by the end of the third quarter. At the top of the heap, Steve Cohen’s Point72 Asset Management dropped the largest stake of all the hedgies tracked by Insider Monkey, valued at an estimated $28.7 million in stock. Shashin Shah’s fund, Think Investments, also dumped its stock, about $25.2 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest was cut by 4 funds by the end of the third quarter.

Let’s go over hedge fund activity in other stocks similar to Six Flags Entertainment Corp (NYSE:SIX). We will take a look at Servicemaster Global Holdings Inc (NYSE:SERV), Copart, Inc. (NASDAQ:CPRT), Assurant, Inc. (NYSE:AIZ), and JetBlue Airways Corporation (NASDAQ:JBLU). This group of stocks’ market valuations match SIX’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SERV 36 1305900 4
CPRT 34 349162 8
AIZ 16 219776 -8
JBLU 32 486895 -6

As you can see these stocks had an average of 29.5 hedge funds with bullish positions and the average amount invested in these stocks was $590 million. That figure was $1.04 billion in SIX’ case. Servicemaster Global Holdings Inc (NYSE:SERV) is the most popular stock in this table. On the other hand Assurant, Inc. (NYSE:AIZ) is the least popular one with only 16 bullish hedge fund positions. Six Flags Entertainment Corp (NYSE:SIX) 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 SERV might be a better candidate to consider a long position.

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