Since Universal Insurance Holdings, Inc. (NYSEAMEX:UVE) has experienced a decline in interest from the smart money, it’s easy to see that there lies a certain “tier” of funds that decided to sell off their entire stakes heading into Q4. At the top of the heap, Christopher R. Hansen’s Valiant Capital cashed in the biggest stake of the 700 funds followed by Insider Monkey, worth about $11 million in stock. Jacob Gottlieb’s fund, Visium Asset Management, also cut its stock, about $6.7 million worth.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Universal Insurance Holdings, Inc. (NYSEAMEX:UVE) but similarly valued. We will take a look at National Presto Industries Inc. (NYSE:NPK), LGI Homes Inc (NASDAQ:LGIH), Retrophin Inc (NASDAQ:RTRX), and Rent-A-Center Inc (NASDAQ:RCII). This group of stocks’ market caps are closest to UVE’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 $152 million. That figure was $42 million in UVE’s case. Retrophin Inc (NASDAQ:RTRX) is the most popular stock in this table. On the other hand LGI Homes Inc (NASDAQ:LGIH) is the least popular one with only 10 bullish hedge fund positions. Universal Insurance Holdings, Inc. (NYSEAMEX:UVE) 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 RTRX might be a better candidate to consider taking a long position in.