Resources Connection, Inc. (RECN) Not Doing Enough To Attract Smart Money

Because Resources Connection, Inc. (NASDAQ:RECN) has faced falling interest from the smart money, it’s safe to say that there was a specific group of funds who sold off their entire stakes last quarter. It’s worth mentioning that Ken Griffin’s Citadel Investment Group said goodbye to the biggest investment of the 700 funds watched by Insider Monkey, comprising about $1.9 million in stock. Peter Muller’s fund, PDT Partners also sold off its stock, about $0.8 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest dropped by 1 fund last quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Resources Connection, Inc. (NASDAQ:RECN). These stocks are Forrester Research, Inc. (NASDAQ:FORR), Vascular Solutions, Inc. (NASDAQ:VASC), Kraton Performance Polymers Inc (NYSE:KRA), and Xura Inc (NASDAQ:MESG). This group of stocks’ market values are similar to Resources Connection, Inc.’s market value.

As you can see these stocks had an average of 14.75 hedge funds with bullish positions and the average amount invested in these stocks was $83 million. That figure was $32 million in Resources Connection, Inc.’s case. Kraton Performance Polymers Inc (NYSE:KRA) is the most popular stock in this table. On the other hand Forrester Research, Inc. (NASDAQ:FORR) is the least popular one with only 10 bullish hedge fund positions. Resources Connection, Inc. (NASDAQ:RECN) is not the least popular stock in this group but hedge fund interest is still below average and there was less money invested in it than any of the other stocks. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Kraton Performance Polymers Inc might be a better candidate to consider for a long position.