Steelcase Inc. (SCS): Are Hedge Funds Right About This Stock?

Seeing as Steelcase Inc. (NYSE:SCS) has gone through a decline in interest from hedge fund managers, it’s easy to see that there was a specific group of funds that slashed their entire stakes last quarter. Interestingly, Joel Greenblatt’s Gotham Asset Management cashed in the largest position of all the hedgies followed by Insider Monkey, worth close to $7.9 million in stock, and Jim Simons’s Renaissance Technologies was right behind this move, as the fund cut about $3.1 million worth of SCS shares.

Let’s now take a look at hedge fund activity in other stocks similar to Steelcase Inc. (NYSE:SCS). These stocks are Gannett Co., Inc. (NYSE:GCI), Shutterfly, Inc. (NASDAQ:SFLY), OM Asset Management PLC (NYSE:OMAM), and Sothebys (NYSE:BID). This group of stocks’ market valuations match SCS’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
GCI 18 65906 2
SFLY 23 460368 1
OMAM 12 63974 1
BID 20 559010 4

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $287 million. That figure was $69 million in SCS’s case. Shutterfly, Inc. (NASDAQ:SFLY) is the most popular stock in this table. On the other hand OM Asset Management PLC (NYSE:OMAM) is the least popular one with only 12 bullish hedge fund positions. Steelcase Inc. (NYSE:SCS) 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 SFLY might be a better candidate to consider taking a long position in.

Disclosure: none.