Seeing as Fidelity Southern Corporation (NASDAQ:LION) has experienced falling interest from the entirety of the hedge funds we track, it’s safe to say that there was a specific group of money managers who sold off their entire stakes in the third quarter. Intriguingly, Emanuel J. Friedman’s EJF Capital dumped the largest investment of the 700 funds monitored by Insider Monkey, worth about $8.7 million in stock, and Matthew Lindenbaum’s Basswood Capital was right behind this move, as the fund dumped about $3 million worth of shares. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest fell by 1 fund in the third quarter.
Let’s now review hedge fund activity in other stocks similar to Fidelity Southern Corporation (NASDAQ:LION). These stocks are Vanda Pharmaceuticals Inc. (NASDAQ:VNDA), K12 Inc. (NYSE:LRN), Computer Programs & Systems, Inc. (NASDAQ:CPSI), and AngioDynamics, Inc. (NASDAQ:ANGO). This group of stocks’ market caps match LION’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 17 hedge funds with bullish positions and the average amount invested in these stocks was $113 million. That figure was just $53 million in LION’s case. Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) is the most popular stock in this table. On the other hand Computer Programs & Systems, Inc. (NASDAQ:CPSI) is the least popular one with only 8 bullish hedge fund positions. Fidelity Southern Corporation (NASDAQ:LION) 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 VNDA might be a better candidate to consider a long position.