Should You Avoid Kennedy-Wilson Holdings Inc (KW)?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually said goodbye to their positions entirely. It’s worth mentioning that Porter Collins, Daniel Moses, and Vincent Daniel’s Seawolf Capital said goodbye to the largest position of the 700 funds monitored by Insider Monkey, worth close to $6.3 million in stock, and Millennium Management, one of the largest hedge funds in the world, was right behind this move, as the fund dropped about $4.7 million worth of shares.

Let’s check out hedge fund activity in other stocks similar to Kennedy-Wilson Holdings Inc (NYSE:KW). We will take a look at TiVo Inc. (NASDAQ:TIVO), Choice Hotels International, Inc. (NYSE:CHH), QTS Realty Trust Inc (NYSE:QTS), and LifePoint Hospitals, Inc. (NASDAQ:LPNT). This group of stocks’ market valuations are similar to KW’s market valuation.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $205 million. That figure was $389 million in KW’s case. TiVo Inc. (NASDAQ:TIVO) is the most popular stock in this table. On the other hand Choice Hotels International, Inc. (NYSE:CHH) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks Kennedy-Wilson Holdings Inc (NYSE:KW) is even less popular than CHH. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None