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Here’s Why Sears Holdings Corporation (SHLD)’s Stock Is Gaining Ground Today

At the top of the heap, William C. Martin’s Raging Capital Management dumped the biggest stake of the 700 funds tracked by Insider Monkey, valued at close to $12.7 million in stock. Cliff Asness’s fund, AQR Capital Management, also dropped its stock, about $1.1 million worth. These transactions are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Sears Holdings Corporation (NASDAQ:SHLD) but similarly valued. These stocks are Imperva Inc (NYSE:IMPV), Whiting Petroleum Corp (NYSE:WLL), Euronav NV Ordinary Shares (NYSE:EURN), and Super Micro Computer, Inc. (NASDAQ:SMCI). This group of stocks’ market valuations match SHLD’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
IMPV 15 97310 -15
WLL 43 303578 3
EURN 27 218487 5
SMCI 20 67806 13

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 $172 million. That figure was $982 million in SHLD’s case. Whiting Petroleum Corp (NYSE:WLL) is the most popular stock in this table. On the other hand Imperva Inc (NYSE:IMPV) is the least popular one with only 15 bullish hedge fund positions. Sears Holdings Corporation (NASDAQ:SHLD) 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 WLL might be a better candidate to consider a long position.

Disclosure: None

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