We already know that not all hedge funds are bullish on the stock and some hedge funds actually cut their positions entirely. Interestingly, Greg Poole’s Echo Street Capital Management cut the biggest stake of the 700 funds watched by Insider Monkey, worth close to $9.7 million in stock, and Joel Greenblatt’s Gotham Asset Management was right behind this move, as the fund said goodbye to about $3.8 million worth of shares.
Let’s now review hedge fund activity in other stocks similar to G&K Services Inc (NASDAQ:GK). We will take a look at Advanced Energy Industries, Inc. (NASDAQ:AEIS), Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX), HMS Holdings Corp. (NASDAQ:HMSY), and Navistar International Corp (NYSE:NAV). This group of stocks’ market caps resemble GK’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $335 million. That figure was $170 million in GK’s case. HMS Holdings Corp. (NASDAQ:HMSY) is the most popular stock in this table. On the other hand Advanced Energy Industries, Inc. (NASDAQ:AEIS) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks G&K Services Inc (NASDAQ:GK) is even less popular than AEIS. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.