Because CARBO Ceramics Inc. (NYSE:CRR) has faced a declination in interest from hedge fund managers, it’s easy to see that there exists a select few hedge funds who were dropping their full holdings last quarter. It’s worth mentioning that Dmitry Balyasny’s Balyasny Asset Management said goodbye to the largest position of the 700 funds followed by Insider Monkey, totaling about $19.1 million in CALL options.. Sander Gerber’s fund, Hudson Bay Capital Management, also dumped its CALL options., about $12.5 million worth of options. These transactions are important to note, as total hedge fund interest dropped by 7 funds last quarter.
Let’s also examine hedge fund activity in other stocks similar to CARBO Ceramics Inc. (NYSE:CRR). These stocks are Stein Mart, Inc. (NASDAQ:SMRT), Forestar Group Inc. (NYSE:FOR), ReTailMeNot Inc (NASDAQ:SALE), and Sunedison Semiconductor Ltd (NASDAQ:SEMI). This group of stocks’ market caps are closest to CARBO Ceramics Inc. (NYSE:CRR)’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 14 hedge funds with bullish positions and the average amount invested in these stocks was $107 million. That figure was $32 million in CARBO Ceramics Inc. (NYSE:CRR)’s case. Sunedison Semiconductor Ltd (NASDAQ:SEMI) is the most popular stock in this table. On the other hand, Forestar Group Inc. (NYSE:FOR) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks, CARBO Ceramics Inc. (NYSE:CRR) is even less popular than Forestar Group Inc. (NYSE:FOR). 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.