Is Fenix Parts Inc (FENX) Going to Burn These Hedge Funds?

Since Fenix Parts Inc (NASDAQ:FENX) has witnessed a falling interest from the smart money, it’s safe to say that there were a few hedge funds that elected to cut their entire stakes by the end of the third quarter. At the top of the heap, Joseph A. Jolson’s Harvest Capital Strategies said goodbye to the biggest investment of the 700 funds monitored by Insider Monkey, valued at about $3.7 million in stock, and Israel Englander’s Millennium Management was right behind this move, as the fund said goodbye to entire stake of 2,566 shares. These moves are important to note, as total hedge fund interest fell by 2 funds by the end of the third quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Fenix Parts Inc (NASDAQ:FENX) but similarly valued. We will take a look at Planar Systems, Inc. (NASDAQ:PLNR), JMP Group Inc. (NYSE:JMP), Energy Fuels Inc Ordinary Shares (Canada) (NYSEMKT:UUUU), and Supercom Ltd (NASDAQ:SPCB). All of these stocks’ market caps are similar to Fenix Parts Inc (NASDAQ:FENX)’s market cap.

As you can see, these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $9 million. That figure was $40 million in Fenix Parts Inc (NASDAQ:FENX)’s case. Planar Systems, Inc. (NASDAQ:PLNR) is the most popular stock in this table. On the other hand, JMP Group Inc. (NYSE:JMP) is the least popular one with only 4 bullish hedge fund positions. Fenix Parts Inc (NASDAQ:FENX) 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, Planar Systems, Inc. (NASDAQ:PLNR) might be a better candidate to consider a long position.