Since Solar Capital Ltd. (NASDAQ:SLRC) has experienced a declination in interest from hedge fund managers, it’s easy to see that there is a sect of funds that slashed their positions entirely heading into Q4. At the top of the heap, Brian Taylor’s Pine River Capital Management said goodbye to the biggest investment of all the hedgies tracked by Insider Monkey, valued at close to $0.7 million in stock. Paul Tudor Jones’s fund, Tudor Investment Corp, also said goodbye to its stock, about $0.2 million worth of shares. These moves are important to note, as aggregate hedge fund interest dropped by 3 funds heading into Q4.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Solar Capital Ltd. (NASDAQ:SLRC) but similarly valued. We will take a look at Team, Inc. (NYSE:TISI), Live Oak Bancshares Inc (NASDAQ:LOB), Gigamon Inc (NYSE:GIMO), and Kulicke and Soffa Industries Inc. (NASDAQ:KLIC). This group of stocks’ market caps resemble Solar Capital Ltd. (NASDAQ:SLRC)’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 16 hedge funds with bullish positions and the average amount invested in these stocks was $65 million. That figure was $41 million in Solar Capital Ltd. (NASDAQ:SLRC)’s case. Gigamon Inc (NYSE:GIMO) is the most popular stock in this table. On the other hand, Live Oak Bancshares Inc (NASDAQ:LOB) is the least popular one with only 8 bullish hedge fund positions. Solar Capital Ltd. (NASDAQ:SLRC) 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, Gigamon Inc (NYSE:GIMO) might be a better candidate to consider a long position.