Because Ardmore Shipping Corp (NYSE:ASC) has experienced a falling interest from hedge fund managers, it’s easy to see that there were a few hedge funds who were dropping their entire stakes by the end of the third quarter. Interestingly, Michael Lowenstein’s Kensico Capital cut the biggest stake of the 700 funds followed by Insider Monkey, worth close to $2.7 million in stock, and Mark Coe’s Coe Capital Management was right behind this move, as the fund dumped about $1.2 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest fell by 4 funds by the end of the third quarter.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Ardmore Shipping Corp (NYSE:ASC) but similarly valued. These stocks are Halcon Resources Corp (NYSE:HK), Southwest Bancorp, Inc. (NASDAQ:OKSB), Avid Technology, Inc. (NASDAQ:AVID), and National Storage Affiliates Trust (NYSE:NSA). This group of stocks’ market valuations matches Ardmore Shipping Corp (NYSE:ASC)’s market valuation.
|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 11 hedge funds with bullish positions and the average amount invested in these stocks was $53 million. That figure was $29 million in Ardmore Shipping Corp (NYSE:ASC)’s case. Avid Technology, Inc. (NASDAQ:AVID) is the most popular stock in this table. On the other hand, Halcon Resources Corp (NYSE:HK) is the least popular one with only 6 bullish hedge fund positions. Ardmore Shipping Corp (NYSE:ASC) 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 Avid Technology, Inc. (NASDAQ:AVID) might be a better candidate to consider a long position.