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Why Seaspan Corporation (SSW)’s Stock Is Deep in Red on Tuesday?

With a general bullishness amongst the heavyweights, key hedge funds have been driving this bullishness. PEAK6 Capital Management initiated the largest call position in Seaspan Corporation (NYSE:SSW). PEAK6 Capital Management had $0.6 million invested in the company at the end of the quarter. David E. Shaw’s D E Shaw also initiated a $0.3 million position during the quarter.

Let’s check out hedge fund activity in other stocks similar to Seaspan Corporation (NYSE:SSW). These stocks are Tumi Holdings Inc (NYSE:TUMI), Mine Safety Appliances (NYSE:MSA), Sanmina Corp (NASDAQ:SANM), and Vishay Intertechnology (NYSE:VSH). This group of stocks’ market values are closest to SSW’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TUMI 22 303227 12
MSA 10 31578 0
SANM 19 101828 4
VSH 17 282575 0

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $180 million. That figure was $23 million in SSW’s case. Tumi Holdings Inc (NYSE:TUMI) is the most popular stock in this table. On the other hand Mine Safety Appliances (NYSE:MSA) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Seaspan Corporation (NYSE:SSW) is even less popular than MSA. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None

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