Is Restoration Hardware Holdings Inc (RH) Going to Burn These Hedge Funds?

Since Restoration Hardware Holdings Inc (NYSE:RH) has witnessed declining sentiment from hedge fund managers, it’s easy to see that there is a sect of funds that slashed their positions entirely heading into Q4. At the top of the heap, Alexander Mitchell’s Scopus Asset Management said goodbye to the largest stake of the 700 funds monitored by Insider Monkey, valued at about $54.1 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund said goodbye to about $24.8 million worth. These transactions are interesting, as aggregate hedge fund interest dropped by 2 funds heading into Q4.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Restoration Hardware Holdings Inc (NYSE:RH) but similarly valued. These stocks are Sally Beauty Holdings, Inc. (NYSE:SBH), Scotts Miracle-Gro Co (NYSE:SMG), Ultragenyx Pharmaceutical Inc (NASDAQ:RARE), and Validus Holdings, Ltd. (NYSE:VR). This group of stocks’ market caps match RH’s market cap.

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $405 million. That figure was $973 million in RH’s case. Sally Beauty Holdings, Inc. (NYSE:SBH) is the most popular stock in this table with 28 funds reporting stakes. On the other hand Validus Holdings, Ltd. (NYSE:VR) is the least popular one with only 19 bullish hedge fund positions. Compared to these stocks Restoration Hardware Holdings Inc (NYSE:RH) 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.