Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that said goodbye to their entire stakes in the stock during the third quarter. It’s worth mentioning that Joel Greenblatt’s Gotham Asset Management said goodbye to the biggest stake of the “upper crust” of funds studied by Insider Monkey, valued at close to $0.2 million in stock. Ben Levine, Andrew Manuel and Stefan Renold’s fund, LMR Partners, also dumped its small position in the stock.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as ModusLink Global Solutions, Inc. (NASDAQ:MLNK) but similarly valued. These stocks are Intrepid Potash, Inc. (NYSE:IPI), Richardson Electronics, Ltd. (NASDAQ:RELL), Recro Pharma Inc (NASDAQ:REPH), and USA Truck, Inc. (NASDAQ:USAK). This group of stocks’ market valuations are closest to MLNK’s market valuation.
|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 6 hedge funds with bullish positions and the average amount invested in these stocks was $21 million. That figure was $31 million in MLNK’s case. Recro Pharma Inc (NASDAQ:REPH) is the most popular stock in this table. On the other hand Richardson Electronics, Ltd. (NASDAQ:RELL) is the least popular one with only 4 bullish hedge fund positions. ModusLink Global Solutions, Inc. (NASDAQ:MLNK) 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 REPH might be a better candidate to consider taking a long position in.