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Hedge Funds Aren’t Crazy About Under Armour Inc (UA) Anymore

Because Under Armour Inc (NYSE:UA) has witnessed bearish sentiment from hedge fund managers, we can see that there was a specific group of hedgies that elected to cut their full holdings in the third quarter. It’s worth mentioning that Curtis Macnguyen’s Ivory Capital (Investment Mgmt) cut the largest position of all the hedgies monitored by Insider Monkey, valued at about $25 million in stock, and Michael Hintze’s CQS Cayman LP was right behind this move, as the fund said goodbye to about $4.9 million worth of UA shares. These transactions are intriguing to say the least, as aggregate hedge fund interest was cut by 4 funds in the third quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Under Armour Inc (NYSE:UA) but similarly valued. These stocks are TD Ameritrade Holding Corp. (NYSE:AMTD), HCP, Inc. (NYSE:HCP), Paychex, Inc. (NASDAQ:PAYX), and Potash Corp./Saskatchewan (USA) (NYSE:POT). This group of stocks’ market valuations are closest to UA’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AMTD 19 476190 -2
HCP 17 265362 -2
PAYX 22 485273 -9
POT 31 822713 1

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $512 million. That figure was just $364 million in UA’s case. Potash Corp./Saskatchewan (USA) (NYSE:POT) is the most popular stock in this table. On the other hand HCP, Inc. (NYSE:HCP) is the least popular one with only 17 bullish hedge fund positions. Under Armour Inc (NYSE:UA) is not the most popular stock in this group, but hedge fund interest is still above average. While this is a slightly positive signal, we’d rather spend our time researching stocks that hedge funds are piling on. In this regard POT might be a better candidate to consider a long position.

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