Is Pier 1 Imports, Inc. (PIR) Going to Burn These Hedge Funds?

When analyzing the holdings of top hedge funds, Insider Monkey has identified a certain “tier” of fund managers that slashed their entire stakes Pier 1 Imports, Inc. (NYSE:PIR) during the third quarter. Intriguingly, Glenn J. Krevlin’s Glenhill Advisors dumped the largest position of all the hedgies watched by Insider Monkey, valued at an estimated $49 million. Bill Miller’s fund, Legg Mason Capital Management, also dropped its entire holding, about $6.7 million worth of PIR shares. 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 Pier 1 Imports, Inc. (NYSE:PIR). We will take a look at FARO Technologies, Inc. (NASDAQ:FARO), Altra Holdings, Inc. (NASDAQ:AIMC), CTS Corporation (NYSE:CTS), and Bojangles Inc (NASDAQ:BOJA). This group of stocks’ market values match PIR’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FARO 7 25745 0
AIMC 7 20354 0
CTS 8 73333 -1
BOJA 13 71765 4

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $48 million. That figure was $47 million in PIR’s case, a slightly bad sign. Bojangles Inc (NASDAQ:BOJA) is the most popular stock in this table, while FARO Technologies, Inc. (NASDAQ:FARO) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Pier 1 Imports, Inc. (NYSE:PIR) is clearly the start. 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.