Is Dolby Laboratories, Inc. (DLB) A Good Long-Term Holding?

Because Dolby Laboratories, Inc. (NYSE:DLB) has experienced falling interest from the entirety of the hedge funds we track, we can see that there was a specific group of money managers that elected to cut their entire stakes by the end of the third quarter. Intriguingly, Anand Parekh’s Alyeska Investment Group sold off the largest position of all the hedgies monitored by Insider Monkey, worth close to $5 million in stock. Ernest Chow and Jonathan Howe’s fund, Sensato Capital Management, also sold off its stock, about $3.6 million worth. These transactions are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Dolby Laboratories, Inc. (NYSE:DLB) but similarly valued. We will take a look at Allison Transmission Holdings Inc (NYSE:ALSN), Grupo Aeroportuario del Sureste (ADR) (NYSE:ASR), PacWest Bancorp (NASDAQ:PACW), and Burlington Stores Inc (NYSE:BURL). This group of stocks’ market values are closest to DLB’s market value.

As you can see these stocks had an average of 24.75 hedge funds with bullish positions and the average amount invested in these stocks was $754 million. That figure was $334 million in DLB’s case. Allison Transmission Holdings Inc (NYSE:ALSN) is the most popular stock in this table. On the other hand Grupo Aeroportuario del Sureste (ADR) (NYSE:ASR) is the least popular one with only 9 bullish hedge fund positions. Dolby Laboratories, Inc. (NYSE:DLB) 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 or BURL might be better candidates to consider for a long position.

Disclosure: None