Is Intersections Inc. (INTX) Going to Burn These Hedge Funds?

Since Intersections Inc. (NASDAQ:INTX) has witnessed bearish sentiment from the entirety of the hedge funds we track, it’s safe to say that there is a sect of fund managers who were dropping their positions entirely in the third quarter. At the top of the heap, Chuck Royce’s Royce & Associates dropped the biggest investment of the 700 funds tracked by Insider Monkey, valued at close to $1.2 million in shares underlying call options.

Let’s now take a look at hedge fund activity in other stocks similar to Intersections Inc. (NASDAQ:INTX). These stocks are Christopher & Banks Corporation (NYSE:CBK), Cinedigm Corp (NASDAQ:CIDM), Northern Dynasty Minerals Ltd. (USA) (NYSEMKT:NAK), and Smith Micro Software, Inc. (NASDAQ:SMSI). This group of stocks’ market caps are similar to INTX’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CBK 6 2533 -5
CIDM 8 2168 -4
NAK 4 2352 0
SMSI 5 5195 1

As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $3 million. That figure was $12 million in INTX’s case. Cinedigm Corp (NASDAQ:CIDM) is the most popular stock in this table. On the other hand Northern Dynasty Minerals Ltd. (USA) (NYSEMKT:NAK) is the least popular one with only 4 bullish hedge fund positions. Intersections Inc. (NASDAQ:INTX) is not the most popular stock in this group but hedge fund interest is still above average and there is far more money invested in it than in any of the other four stocks. This is a positive signal, one which we believe warrants a deeper look at the stock and consideration for addition to one’s portfolio.