Here is What Hedge Funds Think About Real Industry Inc (RELY)

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Ariel Investments. 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 only one of the 800+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was Sabal Capital Management).

Let’s now take a look at hedge fund activity in other stocks similar to Real Industry Inc (NASDAQ:RELY). These stocks are Bankwell Financial Group Inc (NASDAQ:BWFG), Commercial Vehicle Group, Inc. (NASDAQ:CVGI), Allied Motion Technologies, Inc. (NASDAQ:AMOT), and Applied Genetic Technologies Corp (NASDAQ:AGTC). This group of stocks’ market caps are closest to RELY’s market cap.

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $15 million. That figure was $10 million in RELY’s case. Commercial Vehicle Group, Inc. (NASDAQ:CVGI) is the most popular stock in this table. On the other hand Bankwell Financial Group Inc (NASDAQ:BWFG) is the least popular one with only 4 bullish hedge fund positions. Real Industry Inc (NASDAQ:RELY) 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 CVGI might be a better candidate to consider taking a long position in.

Disclosure: none.