Allegheny Technologies Incorporated (ATI)’s Shares Slide After Weak Q2 Guidance

What does the smart money think about Allegheny Technologies Incorporated (NYSE:ATI)?

At the end of the first quarter, a total of 13 of the hedge funds tracked by Insider Monkey held long positions in this stock, a drop of four from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were upping their holdings substantially.

Of the funds tracked by Insider Monkey, Platinum Asset Management, managed by Kerr Neilson, holds the number one position in Allegheny Technologies Incorporated (NYSE:ATI). Platinum Asset Management has a $145.2 million position in the stock, owning 4.84 million shares comprising 2.9% of its 13F portfolio. Sitting in second spot is North Run Capital, managed by Thomas Ellis and Todd Hammer, which holds a $78.8 million position of 2.63 million shares; the fund has 8.6% of its 13F portfolio invested in the stock. Remaining peers that hold long positions include Ken Griffin’s Citadel Investment Group, Lee Munder’s Lee Munder Capital Group, and Israel Englander’s Millennium Management.

Because Allegheny Technologies Incorporated (NYSE:ATI) has faced a declination in interest from the smart money, logic holds that there was a specific group of money managers who sold off their positions entirely in the first quarter. It’s worth mentioning that Dmitry Balyasny’s Balyasny Asset Management said goodbye to the largest investment of the 700 funds followed by Insider Monkey, valued at an estimated $17.2 million in stock, and Jacob Gottlieb of Visium Asset Management was right behind this move, as the fund sold off about $9.4 million worth. These moves are important to note, as total hedge fund interest was cut by four funds during the first quarter.

Considering a bearish hedge fund outlook and lower quarterly guidance released by the company, we do not recommend buying the shares of Allegheny Technologies at this time.

Disclosure: None