Here is What Hedge Funds Think About Westwood Holdings Group, Inc. (WHG)

We view hedge fund selling in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Millennium Management. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically, a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case here because none of the 700+ hedge funds tracked by Insider Monkey identified Westwood Holdings Group, Inc. (NYSE:WHG) as a viable investment and initiated a position in the stock.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Westwood Holdings Group, Inc. (NYSE:WHG) but similarly valued. These stocks are Pengrowth Energy Corp (USA) (NYSE:PGH), Anika Therapeutics, Inc. (NASDAQ:ANIK), Uniqure NV (NASDAQ:QURE), and Nextera Energy Partners LP (NYSE:NEP). This group of stocks’ market values matches Westwood Holdings Group, Inc. (NYSE:WHG)’s market value.

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 $56 million. That figure was $85 million in Westwood Holdings Group, Inc. (NYSE:WHG)’s case. Nextera Energy Partners LP (NYSE:NEP) is the most popular stock in this table. On the other hand, Pengrowth Energy Corp (USA) (NYSE:PGH) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks, Westwood Holdings Group, Inc. (NYSE:WHG) is even less popular than Pengrowth Energy Corp (USA) (NYSE:PGH). Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.