Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Is Straight Path Communications Inc (STRP) Worthy of Your Portfolio?

Due to the fact that Straight Path Communications Inc (NYSEMKT:STRP) has faced a decline in interest from the entirety of the hedge funds we track, it’s safe to say that there lies a certain “tier” of money managers that decided to sell off their positions entirely by the end of the third quarter. Interestingly, Brad Farber’s Atika Capital cut the largest stake of all the hedgies tracked by Insider Monkey, worth close to $1 million in stock. Ken Griffin’s fund, Citadel Investment Group, also dropped its call options, about $0.8 million worth.

Let’s now review hedge fund activity in other stocks similar to Straight Path Communications Inc (NYSEMKT:STRP). These stocks are Primero Mining Corp (NYSE:PPP), Idera Pharmaceuticals Inc (NASDAQ:IDRA), Reading International, Inc. (NASDAQ:RDI), and Aralez Pharmaceuticals Inc (NASDAQ:ARLZ). All of these stocks’ market caps are closest to STRP’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PPP 5 2969 -4
IDRA 9 30977 2
RDI 7 15135 3
ARLZ 17 92540 -3

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $35 million. That figure was $31 million in STRP’s case. Aralez Pharmaceuticals Inc (NASDAQ:ARLZ) is the most popular stock in this table. On the other hand Primero Mining Corp (NYSE:PPP) is the least popular one with only five bullish hedge fund positions. Straight Path Communications Inc (NYSEMKT:STRP) 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 ARLZ might be a better candidate to consider taking a long position in.

Disclosure: none