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Is Communications Sales & Leasing Inc (CSAL) Going To Burn These Hedge Funds?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually got rid of their positions entirely. Interestingly, Clint Carlson’s Carlson Capital got rid of the largest position of the 700 funds tracked by Insider Monkey, comprising an estimated $14.3 million in stock, and Solomon Kumin’s Folger Hill Asset Management was right behind this move, as the fund dumped about $11.6 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Communications Sales & Leasing Inc (NASDAQ:CSAL) but similarly valued. We will take a look at Bemis Company, Inc. (NYSE:BMS), Bio-Rad Laboratories, Inc. (NYSE:BIO), Allison Transmission Holdings Inc (NYSE:ALSN), and Dunkin Brands Group Inc (NASDAQ:DNKN). This group of stocks’ market caps match CSAL’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BMS 16 165865 -2
BIO 29 562873 7
ALSN 38 1902732 4
DNKN 20 557044 -1

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 $797 million. That figure was $474 million in CSAL’s case. Allison Transmission Holdings Inc (NYSE:ALSN) is the most popular stock in this table. On the other hand Bemis Company, Inc. (NYSE:BMS) is the least popular one with only 16 bullish hedge fund positions. Communications Sales & Leasing Inc (NASDAQ:CSAL) 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 ALSN might be a better candidate to consider taking a long position in.

Disclosure: None