Poor Quarter Causes Loss of Confidence in Rand Logistics, Inc. (RLOG)

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Coe Capital Management. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds into a more promising idea. However, we don’t think this is the case because none of the 700+ hedge funds tracked by Insider Monkey identified RLOG as a viable investment and initiated a position in the stock during that time.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Rand Logistics, Inc. (NASDAQ:RLOG) but similarly valued. We will take a look at Identiv, Inc. (NASDAQ:INVE), Alpha Pro Tech, Ltd. (NYSEMKT:APT), Qumu Corp (NASDAQ:QUMU), and General Employment Enterprises, Inc. (NYSEMKT:JOB). This group of stocks’ market values match RLOG’s market value.

As you can see these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $4 million. That figure was $6 million in RLOG’s case. Identiv, Inc. (NASDAQ:INVE) is the most popular stock in this table. On the other hand Alpha Pro Tech, Ltd. (NYSEMKT:APT) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Rand Logistics, Inc. (NASDAQ:RLOG) is tied at the bottom, though it does have an above-average amount of capital invested in it still, with hedgies owning 15.60% of its float. Nonetheless, we tend to favor stocks with more investors noticing them rather than one wealthy investor doing so, and thus, we fell INVE may be a better option at present, though all of the stocks have relatively underwhelming levels of smart money engagement.