Is Equity Commonwealth (EQC) A Good Stock To Buy?

Because Equity Commonwealth (NYSE:EQC) has experienced falling interest from hedge fund managers, logic holds that there was a specific group of money managers who sold off their entire stakes last quarter. It’s worth mentioning that Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital dumped the largest position of the “upper crust” of funds tracked by Insider Monkey, valued at an estimated $9.3 million in stock. Eduardo Abush’s fund, Waterfront Capital Partners, also said goodbye to its stock, about $5.8 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest was cut by 1 fund last quarter.

Let’s check out hedge fund activity in other stocks similar to Equity Commonwealth (NYSE:EQC). These stocks are Chicago Bridge & Iron Company N.V. (NYSE:CBI), Tableau Software Inc (NYSE:DATA), Synovus Financial Corp. (NYSE:SNV), and The Hanover Insurance Group, Inc. (NYSE:THG). This group of stocks’ market valuations are closest to EQC’s market valuation.

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $466 million. That figure was $378 million in EQC’s case. Tableau Software Inc (NYSE:DATA) is the most popular stock in this table. On the other hand The Hanover Insurance Group, Inc. (NYSE:THG) is the least popular one with only 16 bullish hedge fund positions. Equity Commonwealth (NYSE:EQC) 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 DATA might be a better candidate to consider a long position.

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