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Successful Hedge Funds Seeing A Lot of Gloom in Joy Global Inc. (JOY)

Judging by the fact that Joy Global Inc. (NYSE:JOY) has faced falling interest from the smart money, it’s easy to see that there lies a certain “tier” of money managers that slashed their full holdings in the third quarter. Intriguingly, Israel Englander’s Millennium Management dumped the largest position of the “upper crust” of funds monitored by Insider Monkey, totaling about $12.5 million in stock, and Principal Global Investors’ Columbus Circle Investors was right behind this move, as the fund cut about $8.5 million worth of shares. These transactions are interesting, as aggregate hedge fund interest was cut by 1 fund in the third quarter.

Let’s go over hedge fund activity in other stocks similar to Joy Global Inc. (NYSE:JOY). We will take a look at WP Glimcher Inc (NYSE:WPG), Interval Leisure Group, Inc. (NASDAQ:IILG), Shopify Inc (NYSE:SHOP), and Hilltop Holdings Inc. (NYSE:HTH). All of these stocks’ market caps match JOY’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
WPG 13 82733 -4
IILG 20 284871 -8
SHOP 31 450154 7
HTH 15 34838 1

As you can see these stocks had an average of 19.75 hedge funds with bullish positions and the average amount invested in these stocks was $213 million. That figure was $337 million in JOY’s case. Shopify Inc (NYSE:SHOP) is the most popular stock in this table. On the other hand WP Glimcher Inc (NYSE:WPG) is the least popular one with only 13 bullish hedge fund positions. Joy Global Inc. (NYSE:JOY) 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 SHOP might be a better candidate to consider a long position in.

Disclosure: None

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