Were Hedge Funds Right About A Schulman Inc (SHLM) As Shares Keep Falling After Poor Quarterly Results?

What have hedge funds been doing with A. Schulman Inc (NASDAQ:SHLM)?

Heading into the second quarter, a total of 11 of the hedge funds tracked by Insider Monkey held long positions in this stock, a reduction of 35% from one quarter earlier. With the smart money’s capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were upping their holdings considerably.

Of the funds tracked by Insider Monkey, Mariko Gordon’s Daruma Asset Management had the biggest position in A. Schulman Inc (NASDAQ:SHLM), worth close to $87.1 million and consisting of 1.81 million shares. Coming in second was Royce & Associates, led by Chuck Royce, holding a $24.2 million position of 502,590 shares; the fund had 0.1% of its 13F portfolio invested in the stock. Other hedge funds with similar optimism consist of Cliff Asness’ AQR Capital Management, Ira Unschuld’s Brant Point Investment Management, and Peter Algert and Kevin Coldiron’s Algert Coldiron Investors.

Because A. Schulman Inc (NASDAQ:SHLM) has experienced declining sentiment from hedge fund managers, logic holds that there was a specific group of money managers who were dropping their entire stakes heading into the second quarter. Interestingly, Ken Grossman and Glen Schneider’s SG Capital Management said goodbye to the largest investment of the 700 funds tracked by Insider Monkey, totaling about $8.6 million in stock, while Jim Simons of Renaissance Technologies was right behind this move, as the fund manager said goodbye to about $2.7 million worth of shares.

Considering the negative investor sentiment that appeared to foretell the lower-than-expected quarterly results, we do not recommend buying the shares of A Schulman Inc at this time.

Disclosure: None