Here is What Hedge Funds Think About Gulf Island Fabrication, Inc. (GIFI)

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Millennium Management. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because none of the 700+ hedge funds tracked by Insider Monkey identified GIFI as a viable investment and initiated a position in the stock.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Gulf Island Fabrication, Inc. (NASDAQ:GIFI) but similarly valued. We will take a look at Hutchinson Technology Incorporated (NASDAQ:HTCH), Kura Oncology Inc (NASDAQ:KURA), American Farmland Co (NYSEMKT:AFCO), and BG Staffing Inc (NYSEMKT:BGSF). This group of stocks’ market values match GIFI’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
HTCH 6 12146 1
KURA 5 33587 0
AFCO 5 3243 2
BGSF 4 1430 -2

As you can see these stocks had an average of five funds with bullish positions and the average amount invested in these stocks was $13 million. That figure was $18 million in GIFI’s case. Hutchinson Technology Incorporated (NASDAQ:HTCH) is the most popular stock in this table. On the other hand BG Staffing Inc (NYSEMKT:BGSF) is the least popular one with only four bullish hedge fund positions. Compared to these stocks Gulf Island Fabrication, Inc. (NASDAQ:GIFI) 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.

Disclosure: None