Investors Are Losing Confidence In Black Box Corporation (BBOX)

Due to the fact that Black Box Corporation (NASDAQ:BBOX) has faced a declination in interest from the entirety of the hedge funds we track, we can see that there is a sect of hedgies that elected to cut their entire stakes by the end of the third quarter. At the top of the heap, Neil Chriss’ Hutchin Hill Capital sold off the biggest position of the 700 funds monitored by Insider Monkey, worth close to $0.3 million in stock, and Dmitry Balyasny’s Balyasny Asset Management was right behind this move, as the fund dumped about $0.3 million worth of shares. These moves are important to note, as aggregate hedge fund interest fell by 2 funds by the end of the third quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Black Box Corporation (NASDAQ:BBOX) but similarly valued. These stocks are Strattec Security Corp. (NASDAQ:STRT), Penn West Petroleum Ltd (USA) (NYSE:PWE), Atlantic Power Corp (NYSE:AT), and KMG Chemicals, Inc. (NYSE:KMG). All of these stocks’ market caps resemble Black Box Corporation’s market cap.

As you can see these stocks had an average of 10.25 hedge funds with bullish positions and the average amount invested in these stocks was $34 million. That figure was $12 million in Black Box Corporation’s case. Penn West Petroleum Ltd (USA) (NYSE:PWE) is the most popular stock in this table. On the other hand Strattec Security Corp. (NASDAQ:STRT) is the least popular one with only 5 bullish hedge fund positions. Black Box Corporation (NASDAQ:BBOX) 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 Penn West might be a better candidate to consider a long position in.