Due to the fact that TrueCar Inc (NASDAQ:TRUE) has faced declining sentiment from the smart money, it’s easy to see that there were a few hedgies that elected to cut their entire stakes last quarter. At the top of the heap, Doug Gordon, Jon Hilsabeck and Don Jabro’s Shellback Capital dumped the largest stake of the 700 funds watched by Insider Monkey, worth an estimated $2.2 million in stock, and Chuck Royce’s Royce & Associates was right behind this move, as the fund cut about $1.7 million worth. These moves are interesting, as total hedge fund interest fell by 5 funds last quarter.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as TrueCar Inc (NASDAQ:TRUE) but similarly valued. We will take a look at AK Steel Holding Corporation (NYSE:AKS), Ascendis Pharma A/S (NASDAQ:ASND), Tredegar Corporation (NYSE:TG), and Moneygram International Inc (NYSE:MGI). This group of stocks’ market caps are closest to TRUE’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 13 hedge funds with bullish positions and the average amount invested in these stocks was $73 million. That figure was $69 million in TRUE’s case. AK Steel Holding Corporation (NYSE:AKS) is the most popular stock in this table. On the other hand Tredegar Corporation (NYSE:TG) is the least popular one with only 7 bullish hedge fund positions. TrueCar Inc (NASDAQ:TRUE) 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 AKS might be a better candidate to consider a long position.