Should You Add Hawaiian Telcom HoldCo Inc (HCOM) to Your Portfolio?

Due to the fact that Hawaiian Telcom HoldCo Inc (NASDAQ:HCOM) has sustained a decline in interest from the aggregate hedge fund industry, it’s easy to see that there is a sect of funds who sold off their full holdings last quarter. Interestingly, Willem Mesdag’s Red Mountain Capital sold off the biggest position of the “upper crust” of funds followed by Insider Monkey, totaling about $1.4 million in stock, and Benjamin A. Smith’s Laurion Capital Management was right behind this move, as the fund said goodbye to about $0.3 million worth of shares.

Let’s go over hedge fund activity in other stocks similar to Hawaiian Telcom HoldCo Inc (NASDAQ:HCOM). These stocks are Nobilis Health Corp (NYSEMKT:HLTH), Beigene Ltd (ADR) (NASDAQ:BGNE), Chimerix Inc (NASDAQ:CMRX), and Capitol Acquisition Corp III (NASDAQ:CLACU). This group of stocks’ market caps match HCOM’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
HLTH 6 7779 1
BGNE 15 122131 1
CMRX 15 40229 2
CLACU 13 128330 1

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $75 million. That figure was $21 million in HCOM’s case. Beigene Ltd (ADR) (NASDAQ:BGNE) is the most popular stock in this table. On the other hand Nobilis Health Corp (NYSEMKT:HLTH) is the least popular one with only 6 bullish hedge fund positions. Hawaiian Telcom HoldCo Inc (NASDAQ:HCOM) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard BGNE might be a better candidate to consider taking a long position in.

Disclosure: None