Due to the fact that Centene Corp (NYSE:CNC) has faced a decline in interest from the entirety of the hedge funds we track, it’s easy to see that there is a sect of fund managers who were dropping their full holdings by the end of the third quarter. Intriguingly, Alok Agrawal’s Bloom Tree Partners said goodbye to the biggest investment of all the hedgies monitored by Insider Monkey, valued at an estimated $21.6 million in stock, and Steve Cohen’s Point72 Asset Management was right behind this move, as the fund dumped about $14.5 million worth of shares. These bearish behaviors are important to note, as total hedge fund interest fell by 10 funds by the end of the third quarter.
Let’s now take a look at hedge fund activity in other stocks similar to Centene Corp (NYSE:CNC). We will take a look at Tractor Supply Company (NASDAQ:TSCO), Autodesk, Inc. (NASDAQ:ADSK), Host Hotels and Resorts Inc (NYSE:HST), and Skyworks Solutions Inc (NASDAQ:SWKS). This group of stocks’ market values are closest to CNC’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| TSCO | 25 | 475375 | -4 |
| ADSK | 38 | 4560266 | 3 |
| HST | 17 | 228297 | 3 |
| SWKS | 32 | 457924 | -1 |
As you can see these stocks had an average of 28 hedge funds with bullish positions and the average amount invested in these stocks was $1.43 billion. That figure was $333 million in CNC’s case. Autodesk, Inc. (NASDAQ:ADSK) is the most popular stock in this table. On the other hand Host Hotels and Resorts Inc (NYSE:HST) is the least popular one with only 17 bullish hedge fund positions. Centene Corp (NYSE:CNC) is not the least popular stock in this group but hedge fund interest is still below average and falling fast. This is a negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ADSK might be a better candidate to consider a long position in.
Disclosure: None
