Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren’t any hedge funds dumping their holdings during the third quarter, there weren’t any hedge funds initiating brand new positions. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven’t identified any viable catalysts that can attract investor attention.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Seaspan Corporation (NYSE:SSW) but similarly valued. These stocks are FBL Financial Group (NYSE:FFG), Community Bank System, Inc. (NYSE:CBU), Express, Inc. (NYSE:EXPR), and Pacira Pharmaceuticals Inc (NASDAQ:PCRX). All of these stocks’ market caps are closest to SSW’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 19 hedge funds with bullish positions and the average amount invested in these stocks was $174 million. That figure was $24 million in Seaspan Corporation (NYSE:SSW)’s case. Express, Inc. (NYSE:EXPR) is the most popular stock in this table. On the other hand, Community Bank System, Inc. (NYSE:CBU) is the least popular one with only 6 bullish hedge fund positions. Seaspan Corporation (NYSE:SSW) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, Express, Inc. (NYSE:EXPR) might be a better candidate to consider a long position.