Has REGAL-BELOIT CORPORATION (RBC) Hit the Wall?

Judging by the fact that REGAL-BELOIT CORPORATION (NYSE:RBC) has faced declining sentiment from hedge fund managers, we can see that there were a few money managers that elected to cut their positions entirely last quarter. Interestingly, Richard S. Pzena’s Pzena Investment Management dropped the largest position of the 700 funds followed by Insider Monkey, totaling an estimated $13.5 million in stock, and Gregg Moskowitz’s Interval Partners was right behind this move, as the fund cut about $1.2 million worth of shares. These bearish behaviors are important to note, as total hedge fund interest was cut by 2 funds last quarter.

Let’s now review hedge fund activity in other stocks similar to REGAL-BELOIT CORPORATION (NYSE:RBC). These stocks are The Medicines Company (NASDAQ:MDCO), NorthWestern Corp (NYSE:NWE), Prospect Capital Corporation (NASDAQ:PSEC), and Ryman Hospitality Properties, Inc. (REIT) (NYSE:RHP). This group of stocks’ market valuations are similar to RBC’s market valuation.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $339 million. That figure was $223 million in RBC’s case. The Medicines Company (NASDAQ:MDCO) is the most popular stock in this table. On the other hand NorthWestern Corp (NYSE:NWE) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks REGAL-BELOIT CORPORATION (NYSE:RBC) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.