We already know that not all hedge funds are bullish on the stock and some hedge funds actually cut their positions entirely. Interestingly, Dennis Puri and Oliver Keller’s Hunt Lane Capital cut the biggest stake of all the hedgies studied by Insider Monkey, comprising close to $13.5 million in stock, and Lei Zhang’s Hillhouse Capital Management was right behind this move, as the fund sold off about $4.3 million worth of shares.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Zendesk Inc (NYSE:ZEN) but similarly valued. These stocks are United Bankshares, Inc. (NASDAQ:UBSI), GameStop Corp. (NYSE:GME), Western Refining, Inc. (NYSE:WNR), and Wintrust Financial Corp (NASDAQ:WTFC). This group of stocks’ market values resemble ZEN’s market value.
|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 20 funds with bullish positions and the average amount invested in these stocks was $234 million, compared to $309 million in ZEN’s case. GameStop Corp. (NYSE:GME) is the most popular stock in this table. On the other hand United Bankshares, Inc. (NASDAQ:UBSI) is the least popular one with only eight funds holding shares. Zendesk Inc (NYSE:ZEN) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard GameStop Corp. (NYSE:GME) might be a better candidate to consider taking a long position in.