Radio One, Inc. (ROIAK): Are Hedge Funds Right About This Stock?

Seeing as Radio One, Inc. (NASDAQ:ROIAK) has faced declining sentiment from the aggregate hedge fund industry, it’s easy to see that there is a sect of hedge funds that elected to cut their full holdings heading into Q4. Interestingly, Paul J. Isaac’s Arbiter Partners Capital Management cut the largest investment of all the hedgies watched by Insider Monkey, valued at about $0.3 million in stock. Ben Levine, Andrew Manuel and Stefan Renold’s fund, LMR Partners, also said goodbye to its stock, about $0 million worth. These moves are important to note, as total hedge fund interest was cut by 1 fund heading into Q4.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Radio One, Inc. (NASDAQ:ROIAK) but similarly valued. We will take a look at Jernigan Capital Inc (NYSE:JCAP), GTx, Inc. (NASDAQ:GTXI), Arowana Inc. Ordinary Shares (NASDAQ:ARWA), and Rick’s Cabaret Int’l, Inc (NASDAQ:RICK). This group of stocks’ market values match ROIAK’s market value.

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $10 million. That figure was $11 million in ROIAK’s case. Rick’s Cabaret Int’l, Inc (NASDAQ:RICK) is the most popular stock in this table, while the least popular one is GTx, Inc. (NASDAQ:GTXI).In comparison, Radio One, Inc. (NASDAQ:ROIAK) is not the most nor the least popular stock in this group, but hedge fund interest is still above average. Although this may indicate it is a stock worth considering, we’d rather spend our time researching stocks that hedge funds are piling on. In this case, RICK might be a better alternative for your portfolio.