HFF, Inc. (HF): Hedge Fund Sentiment Unchanged

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that sold off their entire stakes in the stock during the third quarter. At the top of the heap, Israel Englander’s Millennium Management sold off the biggest stake of the 700 funds tracked by Insider Monkey, comprising an estimated $1.1 million in stock, and Matthew Tewksbury’s Stevens Capital Management was right behind this move, as the fund dumped about $0.3 million worth of shares.

Let’s also examine hedge fund activity in other stocks similar to HFF, Inc. (NYSE:HF). We will take a look at Endologix, Inc. (NASDAQ:ELGX), PennyMac Mortgage Investment Trust (NYSE:PMT), Fortuna Silver Mines Inc. (NYSE:FSM), and Aerie Pharmaceuticals Inc (NASDAQ:AERI). This group of stocks’ market valuations are closest to HF’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ELGX 16 193843 -8
PMT 13 38148 -1
FSM 11 39329 1
AERI 31 395104 14

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $167 million. That figure was $24 million in HF’s case. Aerie Pharmaceuticals Inc (NASDAQ:AERI) is the most popular stock in this table. On the other hand Fortuna Silver Mines Inc. (NYSE:FSM) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks HFF, Inc. (NYSE:HF) is even less popular than FSM. 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.

Disclosure: None