What Has Hedge Funds Fleeing From Starz (STRZA)?

Since Starz (NASDAQ:STRZA) has experienced declining sentiment from the entirety of the hedge funds we track, we can see that there were a few hedge funds that slashed their full holdings by the end of the third quarter. Intriguingly, James Dinan’s York Capital Management dumped the largest position of the 700 funds monitored by Insider Monkey, comprising close to $42.9 million in stock. Nehal Chopra’s fund, Ratan Capital Group, also dumped its stock, about $38.5 million worth. These moves are important to note, as aggregate hedge fund interest dropped by 7 funds by the end of the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Starz (NASDAQ:STRZA) but similarly valued. These stocks are Brandywine Realty Trust (NYSE:BDN), Mercury General Corporation (NYSE:MCY), Cable One Inc (NYSE:CABO), and Chesapeake Energy Corporation (NYSE:CHK). This group of stocks’ market valuations are similar to STRZA’s market valuation.

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $427 million. That figure was $470 million in STRZA’s case. Chesapeake Energy Corporation (NYSE:CHK) is the most popular stock in this table. On the other hand Mercury General Corporation (NYSE:MCY) is the least popular one with only 10 bullish hedge fund positions. Starz (NASDAQ:STRZA) 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 CHK might be a better candidate to consider a long position in.

Disclosure: None