Judging by the fact that The Wendy’s Company (NASDAQ:WEN) has faced a declination in interest from the entirety of the hedge funds we track, we can see that there is a sect of hedgies that elected to cut their entire stakes last quarter. At the top of the heap, David Abrams’ Abrams Capital Management said goodbye to the biggest stake of the 700 funds monitored by Insider Monkey, comprising an estimated $47.9 million in stock. Jason Karp’s fund, Tourbillon Capital Partners, also sold off its stock, about $47.4 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest was cut by 12 funds last quarter.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as The Wendy’s Company (NASDAQ:WEN) but similarly valued. We will take a look at Avolon Holdings Ltd (NYSE:AVOL), UMB Financial Corporation (NASDAQ:UMBF), PIMCO Dynamic Credit Income Fund (NYSE:PCI), and Kennedy-Wilson Holdings Inc (NYSE:KW). This group of stocks’ market values are similar to The Wendy’s Company’s market value.
|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 11.5 hedge funds with bullish positions and the average amount invested in these stocks was $198 million. That figure was $632 million in The Wendy’s Company’s case. Kennedy-Wilson Holdings Inc (NYSE:KW) is the most popular stock in this table. On the other hand PIMCO Dynamic Credit Income Fund (NYSE:PCI) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks The Wendy’s Company (NASDAQ:WEN) is more popular among hedge funds. Considering that hedge funds are still fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio, bearing in mind the recent large dip in sentiment.