Since Papa Murphy’s Holdings Inc (NASDAQ:FRSH) has faced falling interest from the aggregate hedge fund industry, it’s easy to see that there exists a select few money managers that slashed their positions entirely by the end of the third quarter. At the top of the heap, John Overdeck and David Siegel’s Two Sigma Advisors said goodbye to the largest investment of the “upper crust” of funds followed by Insider Monkey, totaling about $1.5 million in stock, and Paul Tudor Jones’s Tudor Investment Corp was right behind this move, as the fund sold off about $0.3 million worth. These moves are interesting, as aggregate hedge fund interest fell by 2 funds by the end of the third quarter.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Papa Murphy’s Holdings Inc (NASDAQ:FRSH) but similarly valued. These stocks are Millennial Media, Inc. (NYSE:MM), Organovo Holdings Inc (NYSEMKT:ONVO), Titan Machinery Inc. (NASDAQ:TITN), and Catalyst Pharmaceutical Partners, Inc. (NASDAQ:CPRX). This group of stocks’ market caps are closest to FRSH’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 12 hedge funds with bullish positions and the average amount invested in these stocks was $30 million. That figure was $17 million in FRSH’s case. Catalyst Pharmaceutical Partners, Inc. (NASDAQ:CPRX) is the most popular stock in this table, while Organovo Holdings Inc (NYSEMKT:ONVO) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Papa Murphy’s Holdings Inc (NASDAQ:FRSH) is even less popular than ONVO. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.