Norwegian Cruise Line Holdings Ltd (NCLH): Are Hedge Funds Right About This Stock?

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Because Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH) has experienced bearish sentiment from hedge fund managers, it’s easy to see that there was a specific group of hedgies who were dropping their entire stakes in the third quarter. Interestingly, Gregg Moskowitz’s Interval Partners sold off the largest stake of the 700 funds followed by Insider Monkey, comprising about $20.7 million in stock, and Louis Bacon’s Moore Global Investments was right behind this move, as the fund cut about $16.8 million worth. These transactions are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH) but similarly valued. These stocks are Loews Corporation (NYSE:L), Best Buy Co., Inc. (NYSE:BBY), Agrium Inc. (USA) (NYSE:AGU), and Fidelity National Financial Inc (NYSE:FNF). This group of stocks’ market values are similar to NCLH’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
L 19 1010435 -7
BBY 28 700302 -6
AGU 20 1183360 -9
FNF 47 2102715 0

As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $1249 million. That figure was $745 million in NCLH’s case. Fidelity National Financial Inc (NYSE:FNF) is the most popular stock in this table. On the other hand, Loews Corporation (NYSE:L) is the least popular one. Although Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH), with 38 bullish hedge fund positions, is not the most popular stock in this group, hedge fund interest is still above average. This may be a positive sign, but still we’d rather spend our time focusing on stocks that hedge funds are collectively most bullish on. In this regard, FNF might represent a better buying opportunity.

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