Should You Follow the Smart Money Out of TiVo Corp (TIVO)?

Seeing as TiVo Corp (NASDAQ:TIVO) has gone through bearish sentiment from the smart money, it’s safe to say that there exists a select few fund managers who sold off their full holdings heading into Q4. It’s worth mentioning that John Orrico’s Water Island Capital cashed in the biggest investment of all the investors watched by Insider Monkey, worth close to $62 million in stock.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as TiVo Corp (NASDAQ:TIVO) but similarly valued. We will take a look at Choice Hotels International, Inc. (NYSE:CHH), QTS Realty Trust Inc (NYSE:QTS), LifePoint Hospitals, Inc. (NASDAQ:LPNT), and Wright Medical Group Inc (NASDAQ:WMGI). This group of stocks’ market caps are similar to TIVO’s market cap.

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $266 million. That figure was $415 million in TIVO’s case. Wright Medical Group Inc (NASDAQ:WMGI) 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. TiVo Corp (NASDAQ:TIVO) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard WMGI might be a better candidate to consider taking a long position in.

Disclosure: None