Hedge Funds Aren’t Crazy About THL Credit, Inc. (TCRD) Anymore

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Seeing as THL Credit, Inc. (NASDAQ:TCRD) has faced a declining sentiment from the entirety of the hedge funds we track, logic holds that there exists a select few funds who were dropping their entire stakes by the end of the third quarter. At the top of the heap, Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital cut the largest investment of the 700 funds tracked by Insider Monkey, valued at about $0.2 million in stock. Bruce Silver’s fund, Silver Capital Management LLC, also dropped its stock, about $0.1 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest dropped by 2 funds by the end of the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as THL Credit, Inc. (NASDAQ:TCRD) but similarly valued. We will take a look at Corindus Vascular Robotics Inc (NYSEMKT:CVRS), Weight Watchers International, Inc. (NYSE:WTW), Fifth Street Asset Management Inc (NASDAQ:FSAM), and Columbus McKinnon Corp. (NASDAQ:CMCO). All of these stocks’ market caps are similar to TCRD’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CVRS 4 62436 0
WTW 14 25517 5
FSAM 6 13089 1
CMCO 14 62257 4

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $41 million, which is considerably higher in comparison to the $14 million in TCRD’s case. Weight Watchers International, Inc. (NYSE:WTW) is the most popular stock in this table, while Corindus Vascular Robotics Inc (NYSEMKT:CVRS) is the least popular one with only 4 bullish hedge fund positions. THL Credit, Inc. (NASDAQ:TCRD) 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 WTW might be a better candidate to consider a long position.

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