Is Office Depot Inc (ODP) Going to Burn These Hedge Funds?

Seeing as Office Depot Inc (NASDAQ:ODP) has experienced a falling interest from the aggregate hedge fund industry, we can see that there was a specific group of money managers that elected to cut their full holdings last quarter. At the top of the heap, Richard Perry’s Perry Capital cut the largest stake of the 700 funds watched by Insider Monkey, comprising close to $34.3 million in stock, and Marc Majzner’s Clearline Capital was right behind this move, as the fund said goodbye to about $23.2 million worth. These transactions are interesting, as total hedge fund interest was cut by 2 funds last quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Office Depot Inc (NASDAQ:ODP) but similarly valued. We will take a look at Clovis Oncology Inc (NASDAQ:CLVS), Rackspace Hosting, Inc. (NYSE:RAX), Blue Buffalo Pet Products Inc (NASDAQ:BUFF), and HEALTHSOUTH Corp. (NYSE:HLS). All of these stocks’ market caps match ODP’s market cap.

As you can see these stocks had an average of 27 hedge funds with bullish positions and the average amount invested in these stocks was $614 million, versus $965 million in ODP’s case. Clovis Oncology Inc (NASDAQ:CLVS) is the most popular stock in this table with 31 funds reporting long positions. On the other hand HEALTHSOUTH Corp. (NYSE:HLS) is the least popular one with only 22 bullish hedge fund positions. Compared to these stocks Office Depot Inc (NASDAQ:ODP) 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.