Is Cal-Maine Foods Inc (CALM) Worthy of Your Portfolio?

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Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that dropped their entire stakes in the stock during the third quarter. It’s worth mentioning that Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital dropped the largest position of the 700 funds studied by Insider Monkey, worth an estimated $9.2 million in stock, and Steve Cohen’s Point72 Asset Management was right behind this move, as the fund dropped about $4.4 million worth of shares.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Cal-Maine Foods Inc (NASDAQ:CALM) but similarly valued. These stocks are Tessera Technologies, Inc. (NASDAQ:TSRA), SemGroup Corp (NYSE:SEMG), Travelport Worldwide Ltd (NYSE:TVPT), and Trustmark Corp (NASDAQ:TRMK). This group of stocks’ market values resemble CALM’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TSRA 29 302394 1
SEMG 22 370968 2
TVPT 26 465752 -2
TRMK 7 33540 -1

As you can see these stocks had an average of 21 investors with bullish positions and the average amount invested in these stocks was $293 million. That figure was $92 million in CALM’s case. Tessera Technologies, Inc. (NASDAQ:TSRA) is the most popular stock in this table. On the other hand Trustmark Corp (NASDAQ:TRMK) is the least popular one with only seven funds holding shares. Cal-Maine Foods Inc (NASDAQ:CALM) 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 Tessera Technologies, Inc. (NASDAQ:TSRA) might be a better candidate to consider taking a long position in.

Disclosure: none

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