How Seaspan Corporation (SSW) Stacks Up Against Its Peers

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: GLG Partners. 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 in this case because only one of the 800+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was AQR Capital Management).

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Seaspan Corporation (NYSE:SSW) but similarly valued. We will take a look at GNC Holdings Inc (NYSE:GNC), Adecoagro SA (NYSE:AGRO), Accelerate Diagnostics Inc (NASDAQ:AXDX), and MSG Networks Inc (NYSE:MSGN). This group of stocks’ market valuations resemble SSW’s market valuation.

As you can see these stocks had an average of 20.5 hedge funds with bullish positions and the average amount invested in these stocks was $233 million. That figure was $21 million in SSW’s case. GNC Holdings Inc (NYSE:GNC) is the most popular stock in this table. On the other hand Accelerate Diagnostics Inc (NASDAQ:AXDX) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Seaspan Corporation (NYSE:SSW) is even less popular than AXDX. 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.