Judging by the fact that Aeropostale, Inc. (NYSE:ARO) has experienced a bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there is a sect of hedge funds that elected to cut their entire stakes heading into Q4. Intriguingly, Nathaniel August’s Mangrove Partners dropped the biggest stake of the 700 funds watched by Insider Monkey, totaling about $2.3 million in stock. Soros Fund Management, also dropped its stock, about $0.3 million worth of shares . These bearish behaviors are important to note, as aggregate hedge fund interest was cut by 6 funds heading into Q4.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Aeropostale, Inc. (NYSE:ARO) but similarly valued. We will take a look at Cosi Inc (NASDAQ:COSI), CHC Group Ltd (NYSE:HELI), Eleven Biotherapeutics Inc (NASDAQ:EBIO), and Zosano Pharma Corp (NASDAQ:ZSAN). All of these stock market caps are similar to Aeropostale, Inc. (NYSE:ARO)’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
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 $4 million. That figure was $12 million in Aeropostale, Inc. (NYSE:ARO)’s case. CHC Group Ltd (NYSE:HELI) is the most popular stock in this table. On the other hand, Cosi Inc (NASDAQ:COSI) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks, Aeropostale, Inc. (NYSE:ARO) 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 detail and potentially include it in your portfolio.