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Is RLI Corp. (RLI) A Good Stock To Buy?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually dumped their positions entirely. At the top of the heap, Israel Englander’s Millennium Management dumped the largest position of all the investors tracked by Insider Monkey, valued at about $1 million in stock, and Benjamin A. Smith’s Laurion Capital Management was right behind this move, as the fund said goodbye to about $0.6 million worth of shares.

Let’s go over hedge fund activity in other stocks similar to RLI Corp. (NYSE:RLI). We will take a look at Tech Data Corp (NASDAQ:TECD), Spirit Airlines Incorporated (NASDAQ:SAVE), Owens-Illinois Inc (NYSE:OI), and John Wiley & Sons Inc (NYSE:JW). All of these stocks’ market caps match RLI’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TECD 22 294161 6
SAVE 30 338110 8
OI 25 689067 -2
JW 12 80638 -2

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $350 million. That figure was $121 million in RLI’s case. Spirit Airlines Incorporated (NASDAQ:SAVE) is the most popular stock in this table. On the other hand John Wiley & Sons Inc (NYSE:JW) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks RLI Corp. (NYSE:RLI) is even less popular than JW. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock.

Disclosure: None