Here is What Hedge Funds Think About Tejon Ranch Company (TRC)

Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren’t any hedge funds dumping their holdings during the third quarter, there weren’t any hedge funds initiating brand new positions. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven’t identified any viable catalysts that can attract investor attention.

Let’s check out hedge fund activity in other stocks similar to Tejon Ranch Company (NYSE:TRC). We will take a look at Cynapsus Therapeutics Inc (NASDAQ:CYNA), Flamel Technologies S.A. (ADR) (NASDAQ:FLML), Shoe Carnival, Inc. (NASDAQ:SCVL), and Western Asset Emerging Mrkts Dbt Fnd Inc (NYSE:ESD). This group of stocks’ market valuations match TRC’s market valuation.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $114 million. That figure was $126 million in TRC’s case. Cynapsus Therapeutics Inc (NASDAQ:CYNA) is the most popular stock in this table. On the other hand Western Asset Emerging Mrkts Dbt Fnd Inc (NYSE:ESD) is the least popular one with only 5 bullish hedge fund positions. Tejon Ranch Company (NYSE:TRC) 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 CYNA might be a better candidate to consider taking a long position in.

Disclosure: none.