Because The Western Union Company (NYSE:WU) has witnessed bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there were a few hedgies who sold off their entire stakes in the third quarter. At the top of the heap, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital sold off the largest stake of all the hedgies monitored by Insider Monkey, worth about $9.6 million in stock. Paul Marshall and Ian Wace’s fund, Marshall Wace LLP, also cut its stock, about $9.1 million worth. These moves are important to note, as aggregate hedge fund interest was cut by 2 funds in the third quarter.
Let’s now take a look at hedge fund activity in other stocks similar to The Western Union Company (NYSE:WU). These stocks are Lululemon Athletica inc. (NASDAQ:LULU), Verisign, Inc. (NASDAQ:VRSN), Tripadvisor Inc (NASDAQ:TRIP), and Ingredion Inc (NYSE:INGR). This group of stocks’ market valuations are similar to WU’s market valuation.
|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 29 hedge funds with bullish positions and the average amount invested in these stocks was $1.03 billion. That figure was $785 million in WU’s case. Tripadvisor Inc (NASDAQ:TRIP) is the most popular stock in this table. On the other hand Ingredion Inc (NYSE:INGR) is the least popular one with only 23 bullish hedge fund positions. The Western Union Company (NYSE:WU) 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 TRIP might be a better candidate to consider a long position in.