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NutriSystem Inc. (NTRI): Hedge Funds’ Holdings Are Losing Weight

Due to the fact that NutriSystem Inc. (NASDAQ:NTRI) has witnessed bearish sentiment from the entirety of the hedge funds we track, we can see that there was a specific group of hedge funds that elected to cut their full holdings by the end of the third quarter. Intriguingly, Paul Marshall and Ian Wace’s Marshall Wace LLP sold off the largest stake of all the hedgies watched by Insider Monkey, totaling an estimated $2.4 million in call options, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund said goodbye to about $0.5 million worth of shares. These bearish behaviors are intriguing to say the least, as total hedge fund interest was cut by 4 funds by the end of the third quarter.

Let’s now review hedge fund activity in other stocks similar to NutriSystem Inc. (NASDAQ:NTRI). These stocks are Babcock & Wilcox Enterprises Inc (NYSE:BW), TCP Capital Corp (NASDAQ:TCPC), Vitamin Shoppe Inc (NYSE:VSI), and Weight Watchers International, Inc. (NYSE:WTW). This group of stocks’ market caps match NTRI’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BW 20 198761 0
TCPC 6 7938 -3
VSI 13 132387 -2
WTW 12 44533 -6

As you can see these stocks had an average of 12.75 hedge funds with bullish positions and the average amount invested in these stocks was $96 million. That figure was $153 million in NTRI’s case. Babcock & Wilcox Enterprises Inc (NYSE:BW) is the most popular stock in this table. On the other hand TCP Capital Corp (NASDAQ:TCPC) is the least popular one with only 6 bullish hedge fund positions. NutriSystem Inc. (NASDAQ:NTRI) 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 pouring money into. In this regard BW might be a better candidate to consider a long position in.

Disclosure: None

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