Is Libbey Inc. (LBY) Going to Burn These Hedge Funds?

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Because Libbey Inc. (NYSEMKT:LBY) has sustained falling interest from the aggregate hedge fund industry, logic holds that there is a sect of hedge funds who sold off their positions entirely last quarter. At the top of the heap, Craig A. Drill’s Craig Drill Capital dropped the biggest investment of all the hedgies watched by Insider Monkey, valued at about $6.8 million in stock. Jonathan Lennon’s fund, Pleasant Lake Partners, also dumped its stock, about $2.1 million worth.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Libbey Inc. (NYSEMKT:LBY) but similarly valued. We will take a look at Kimball Electronics Inc (NASDAQ:KE), Cross Country Healthcare, Inc. (NASDAQ:CCRN), Cowen Group, Inc. (NASDAQ:COWN), and Guaranty Bancorp (NASDAQ:GBNK). This group of stocks’ market values are similar to LBY’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
KE 9 17975 1
CCRN 13 16861 3
COWN 10 120445 -1
GBNK 10 69502 0

As you can see these stocks had an average of 10.5 hedge funds with bullish positions and the average amount invested in these stocks was $56 million. That figure was $50 million in LBY’s case. Cross Country Healthcare, Inc. (NASDAQ:CCRN) is the most popular stock in this table. On the other hand Kimball Electronics Inc (NASDAQ:KE) is the least popular one with only 9 bullish hedge fund positions. Libbey Inc. (NYSEMKT:LBY) 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 CCRN might be a better candidate to consider taking a long position in.

Disclosure: None

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