Because Dominion Diamond Corp (NYSE:DDC) has sustained declining sentiment from the smart money, we can see that there was a specific group of fund managers that decided to sell off their positions entirely in the third quarter. Interestingly, Seth Fischer’s Oasis Managementá dumped the biggest investment of all the hedgies followed by Insider Monkey, totaling close to $2.4 million in stock. Joel Greenblatt’s fund, Gotham Asset Management, also dropped its stock, about $0.1 million worth.
Let’s also examine hedge fund activity in other stocks similar to Dominion Diamond Corp (NYSE:DDC). We will take a look at Babcock & Wilcox Enterprises Inc (NYSE:BW), Five9 Inc (NASDAQ:FIVN), Flotek Industries Inc (NYSE:FTK), and Deltic Timber Corp (NYSE:DEL). This group of stocks’ market valuations match DDC’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 16 hedge funds with bullish positions and the average amount invested in these stocks was $155 million. That figure was $73 million in DDC’s case. Five9 Inc (NASDAQ:FIVN) is the most popular stock in this table. On the other hand Deltic Timber Corp (NYSE:DEL) is the least popular one with only 4 bullish hedge fund positions. Dominion Diamond Corp (NYSE:DDC) 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 FIVN might be a better candidate to consider taking a long position in.