Here is What Hedge Funds Think About Selective Insurance Group (SIGI)

Due to the fact that Selective Insurance Group (NASDAQ:SIGI) has gone through bearish sentiment from the smart money, we can see that there were a few money managers who were dropping their full holdings during the third quarter. Interestingly, Millennium Management, one of the largest hedge funds in the world, cashed in the largest investment of the 700 funds monitored by Insider Monkey, valued at about $2.7 million in stock. John Overdeck and David Siegel’s fund, Two Sigma Advisors, also sold off its stock, about $2.4 million worth.

Let’s now take a look at hedge fund activity in other stocks similar to Selective Insurance Group (NASDAQ:SIGI). These stocks are Tootsie Roll Industries, Inc. (NYSE:TR), Knight Transportation (NYSE:KNX), WP Glimcher Inc (NYSE:WPG), and Armstrong World Industries, Inc. (NYSE:AWI). This group of stocks’ market valuations resemble SIGI’s market valuation.

As you can see these stocks had an average of 16 funds with bullish positions and the average amount invested in these stocks was $369 million, compared to $38 million in SIGI’s case. Armstrong World Industries, Inc. (NYSE:AWI) is the most popular stock in this table. On the other hand Knight Transportation (NYSE:KNX) is the least popular one with only nine funds holding shares. Selective Insurance Group (NASDAQ:SIGI) 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 Armstrong World Industries, Inc. (NYSE:AWI) might be a better candidate to consider taking a long position in.

Disclosure: none