Is KLX Inc (KLXI) Going to Burn These Hedge Funds?

Due to the fact that KLX Inc (NASDAQ:KLXI) has faced a bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there is a sect of money managers that slashed their full holdings in the third quarter. It’s worth mentioning that Dinakar Singh’s TPG-AXON Management LP dropped the biggest position of all the hedgies monitored by Insider Monkey, worth about $49.5 million in stock. Gordy Holterman and Derek Dunn’s fund, Overland Advisors, also said goodbye to its stock, about $23.2 million worth of shares. These transactions are important to note, as aggregate hedge fund interest fell by 2 funds in the third quarter.

Let’s go over hedge fund activity in other stocks similar to KLX Inc (NASDAQ:KLXI). These stocks are FleetMatics Group PLC (NYSE:FLTX), Teekay LNG Partners L.P. (NYSE:TGP), InterXion Holding NV (NYSE:INXN), and Pegasystems Inc. (NASDAQ:PEGA). This group of stocks’ market caps are similar to KLX Inc (NASDAQ:KLXI)’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FLTX 13 68660 1
TGP 7 13512 1
INXN 31 881807 -6
PEGA 18 138052 1

As you can see, these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $276 million. That figure was $692 million in KLX Inc (NASDAQ:KLXI)’s case. InterXion Holding NV (NYSE:INXN) is the most popular stock in this table. On the other hand, Teekay LNG Partners L.P. (NYSE:TGP) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks, KLX Inc (NASDAQ:KLXI) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.