Here is What Hedge Funds Think About Career Education Corp. (CECO)

Seeing as Career Education Corp. (NASDAQ:CECO) has experienced falling interest from the aggregate hedge fund industry, it’s easy to see that there were a few fund managers that elected to cut their positions entirely by the end of the third quarter. At the top of the heap, David Brown’s Hawk Ridge Management cut the biggest position of all the hedgies monitored by Insider Monkey, worth close to $1.6 million. Peter Muller’s fund, PDT Partners, also dropped its stock, about $0.5 million worth of shares. These transactions are intriguing to say the least, as total hedge fund interest fell by 3 funds by the end of the third quarter.

Let’s go over hedge fund activity in other stocks similar to Career Education Corp. (NASDAQ:CECO). We will take a look at Global Ship Lease, Inc. (NYSE:GSL), Agilysys, Inc. (NASDAQ:AGYS), BankFinancial Corporation (NASDAQ:BFIN), and Real Industry Inc (NASDAQ:RELY). This group of stocks’ market values resemble CECO’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
GSL 5 6417 1
AGYS 13 141888 3
BFIN 4 34741 1
RELY 9 25280 0

As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $52 million. That figure was $48 million in CECO’s case. Agilysys, Inc. (NASDAQ:AGYS) is the most popular stock in this table. While BankFinancial Corporation (NASDAQ:BFIN) is the least popular stock with only 4 bullish hedge fund positions, Agilysys, Inc. (NASDAQ:AGYS) and Career Education Corp. (NASDAQ:CECO) are leading the pack with 13 long positions. Since AGYS has attracted a higher amount of hedge fund capital, we believe it might be a better candidate to consider a long position.