Here is What Hedge Funds Think About Federal Signal Corporation (FSS)

Judging by the fact that Federal Signal Corporation (NYSE:FSS) has faced a decline in interest from the entirety of the hedge funds we track, logic holds that there lies a certain “tier” of money managers that elected to cut their positions entirely by the end of the third quarter. Interestingly, Joel Greenblatt’s Gotham Asset Management sold off the biggest investment of the 700 funds studied by Insider Monkey, valued at close to $4 million in stock. Jeffrey Moskowitz’s fund, Harvey Partners, also dumped its stock, about $0.8 million worth.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Federal Signal Corporation (NYSE:FSS) but similarly valued. These stocks are Hibbett Sports, Inc. (NASDAQ:HIBB), ICF International Inc (NASDAQ:ICFI), Brookline Bancorp, Inc. (NASDAQ:BRKL), and Engility Holdings Inc (NYSE:EGL). This group of stocks’ market valuations resemble FSS’s market valuation.

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 $32 million, which is lower than the $83 million figure in FSS’s case. Engility Holdings Inc (NYSE:EGL) is the most popular stock in this table. On the other hand Hibbett Sports, Inc. (NASDAQ:HIBB) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Federal Signal Corporation (NYSE:FSS) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.