Seeing as PennyMac Financial Services Inc (NYSE:PFSI) has witnessed a declination in interest from the entirety of the hedge funds we track, logic holds that there was a specific group of fund managers who were dropping their full holdings heading into Q4. Intriguingly, Joseph A. Jolson’s Harvest Capital Strategies said goodbye to the largest position of the “upper crust” of funds tracked by Insider Monkey, worth close to $2.3 million in stock. Eric Halet and Davide Serra’s fund, Algebris Investments, also said goodbye to its stock, about $0.9 million worth. These transactions are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s go over hedge fund activity in other stocks similar to PennyMac Financial Services Inc (NYSE:PFSI). We will take a look at Elizabeth Arden, Inc. (NASDAQ:RDEN), Bridgepoint Education Inc (NYSE:BPI), LinnCo LLC (NASDAQ:LNCO), and Pfenex Inc (NYSEMKT:PFNX). This group of stocks’ market caps match PFSI’s market cap.
|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 11 hedge funds with bullish positions and the average amount invested in these stocks was $30 million, lower than the $162 million in PFSI’s case. LinnCo LLC (NASDAQ:LNCO) is the most popular stock in this table with 13 funds holding long positions, while Elizabeth Arden, Inc. (NASDAQ:RDEN) is the least popular one. Compared to these stocks PennyMac Financial Services Inc (NYSE:PFSI) 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.