Should You Avoid Dana Inc (DAN)?

Because Dana Inc (NYSE:DAN) has faced a decline in interest from hedge fund managers, it’s safe to say that there were a few hedge funds that decided to sell off their positions entirely last quarter. Interestingly, Phill Gross and Robert Atchinson’s Adage Capital Management said goodbye to the largest investment of all the hedgies tracked by Insider Monkey, worth an estimated $6.5 million in stock, and Jim Simons’s Renaissance Technologies was right behind this move, as the fund dumped about $4.1 million worth of DAN shares. These transactions are intriguing to say the least, as total hedge fund interest fell by 1 fund last quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Dana Inc (NYSE:DAN) but similarly valued. These stocks are DineEquity Inc (NYSE:DIN), Eaton Vance Ltd Duration Income Fund (NYSEMKT:EVV), Semtech Corporation (NASDAQ:SMTC), and Astoria Financial Corp (NYSE:AF). This group of stocks’ market caps are similar to DAN’s market cap.

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 $74 million. That figure was $381 million in DAN’s case. Semtech Corporation (NASDAQ:SMTC) is the most popular stock in this table. On the other hand Eaton Vance Ltd Duration Income Fund (NYSEMKT:EVV) is the least popular one with only 3 bullish hedge fund positions. Compared to these stocks Dana Inc (NYSE:DAN) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: none.