Is Universal Display Corporation (OLED) Going to Burn These Hedge Funds?

Since Universal Display Corporation (NASDAQ:OLED) has encountered bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there were a few hedge funds who sold off their entire stakes heading into Q4. It’s worth mentioning that Rob Citrone’s Discovery Capital Management cashed in the biggest investment of the “upper crust” of funds monitored by Insider Monkey, totaling close to $16.4 million in stock, and Kingdom Ridge Capital was right behind this move, as the fund sold off about $13.6 million worth of call options underlying OLED shares, while retaining its long position in the stock.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Universal Display Corporation (NASDAQ:OLED) but similarly valued. We will take a look at PNM Resources, Inc. (NYSE:PNM), WESCO International, Inc. (NYSE:WCC), Nice Systems Ltd (ADR) (NASDAQ:NICE), and Hawaiian Holdings, Inc. (NASDAQ:HA). This group of stocks’ market values resemble OLED’s market value.

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $169 million. That figure was $122 million in OLED’s case. Hawaiian Holdings, Inc. (NASDAQ:HA) is the most popular stock in this table. On the other hand PNM Resources, Inc. (NYSE:PNM) is the least popular one with only 13 bullish hedge fund positions. Universal Display Corporation (NASDAQ:OLED) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard HA might be a better candidate to consider taking a long position in.

Disclosure: None