Seeing as CalAtlantic Group Inc (NYSE:CAA) has witnessed bearish sentiment from the aggregate hedge fund industry, it’s easy to see that there lies a certain “tier” of fund managers that elected to cut their positions entirely heading into Q4. It’s worth mentioning that Robert Emil Zoellner’s Alpine Associates sold off the largest stake of all the hedgies followed by Insider Monkey, totaling about $9.7 million in stock. Andrew Feldstein and Stephen Siderow’s fund, Blue Mountain Capital, also dropped its stock, about $6.1 million worth. These moves are interesting, as aggregate hedge fund interest dropped by 4 funds heading into Q4.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as CalAtlantic Group Inc (NYSE:CAA) but similarly valued. We will take a look at Colony Capital Inc (NYSE:CLNY), Rice Energy Inc (NYSE:RICE), Integra Lifesciences Holdings Corp (NASDAQ:IART), and AVX Corporation (NYSE:AVX). This group of stocks’ market valuations is similar to CalAtlantic Group Inc (NYSE:CAA)’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 22 hedge funds with bullish positions and the average amount invested in these stocks was $353 million. That figure was $188 million in CalAtlantic Group Inc (NYSE:CAA)’s case. Colony Financial Inc (NYSE:CLNY) is the most popular stock in this table. On the other hand, AVX Corporation (NYSE:AVX) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks, CalAtlantic Group Inc (NYSE:CAA) is even less popular than AVX Corporation (NYSE:AVX). Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case, more research is warranted.