Here is What Hedge Funds Think About Urban Outfitters, Inc. (URBN)

Due to the fact that Urban Outfitters, Inc. (NASDAQ:URBN) has witnessed a falling interest from the aggregate hedge fund industry, logic holds that there is a sect of funds that slashed their positions entirely by the end of the third quarter. Interestingly, Steve Cohen’s Point72 Asset Management dropped the largest stake of the 700 funds monitored by Insider Monkey, worth an estimated $40 million in stock. Clifford Fox’s fund, Columbus Circle Investors, also cut its stock, about $34.4 million worth of shares. These moves are intriguing to say the least, as total hedge fund interest fell by 4 funds by the end of the third quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Urban Outfitters, Inc. (NASDAQ:URBN) but similarly valued. We will take a look at Sun Communities Inc (NYSE:SUI), Solera Holdings Inc (NYSE:SLH), PTC Inc (NASDAQ:PTC), and First Niagara Financial Group Inc. (NASDAQ:FNFG). This group of stocks’ market caps is similar to Urban Outfitters, Inc. (NASDAQ:URBN)’s market cap.

As you can see, these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $474 million. That figure was $160 million in Urban Outfitters, Inc. (NASDAQ:URBN)’s case. Solera Holdings Inc (NYSE:SLH) is the most popular stock in this table. On the other hand, Sun Communities Inc (NYSE:SUI) is the least popular one with only 6 bullish hedge fund positions. Urban Outfitters, Inc. (NASDAQ:URBN) 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, Solera Holdings Inc (NYSE:SLH) might be a better candidate to consider a long position.