Judging by the fact that Federated Investors Inc (NYSE:FII) has faced bearish sentiment from the entirety of the hedge funds we track, logic holds that there were a few funds that elected to cut their positions entirely in the third quarter. Intriguingly, David Dreman’s Dreman Value Management dumped the largest position of the “upper crust” of funds followed by Insider Monkey, comprising about $5.1 million in stock. Craig A. Drill’s fund, Craig Drill Capital, also dumped its stock, about $1.7 million worth. These moves are important to note, as total hedge fund interest was cut by 6 funds in the third quarter.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Federated Investors Inc (NYSE:FII) but similarly valued. These stocks are Integrated Device Technology, Inc. (NASDAQ:IDTI), SolarWinds Inc (NYSE:SWI), Synaptics, Incorporated (NASDAQ:SYNA), and EnLink Midstream LLC (NYSE:ENLC). All of these stocks’ market caps are similar to FII’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 21.75 hedge funds with bullish positions and the average amount invested in these stocks was $274 million. That figure was $273 million in FII’s case. Integrated Device Technology, Inc. (NASDAQ:IDTI) is the most popular stock in this table. On the other hand EnLink Midstream LLC (NYSE:ENLC) is the least popular one with only 10 bullish hedge fund positions. Federated Investors Inc (NYSE:FII) 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 IDTI might be a better candidate to consider a long position.