Is Jumei International Holding Ltd (ADR) (JMEI) A Good Stock to Buy?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that cashed in their entire stakes in the stock during the third quarter. It’s worth mentioning that Scott Fine and Peter Richards’ Empire Capital Management cashed in the largest stake of all the investors watched by Insider Monkey, comprising close to $0.7 million in stock. Ken Griffin’s fund, Citadel Investment Group, also dropped its call options, about $0.2 million worth.

Let’s now take a look at hedge fund activity in other stocks similar to Jumei International Holding Ltd (ADR) (NYSE:JMEI). These stocks are Eclipse Resources Corp (NYSE:ECR), A. Schulman Inc (NASDAQ:SHLM), Duluth Holdings Inc (NASDAQ:DLTH), and Air Transport Services Group Inc. (NASDAQ:ATSG). This group of stocks’ market valuations resemble JMEI’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ECR 18 71618 -6
SHLM 11 77215 -5
DLTH 8 35604 2
ATSG 18 257546 2

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $110 million. That figure was $32 million in JMEI’s case. Eclipse Resources Corp (NYSE:ECR) is the most popular stock in this table. On the other hand Duluth Holdings Inc (NASDAQ:DLTH) is the least popular one with only 8 bullish hedge fund positions. Jumei International Holding Ltd (ADR) (NYSE:JMEI) 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 ECR and ATSG might be better candidates to consider taking a long position in.

Disclosure: None