Despite An Earnings Beat Kansas City Southern (KSU) Is Hardly Looking Impressive

How are hedge funds trading Kansas City Southern (NYSE:KSU)?

Heading into the second quarter, a total of 22 of the hedge funds tracked by Insider Monkey were bullish in this stock, down from 26 funds at the end of the previous quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were increasing their holdings considerably.

According to hedge fund experts at Insider Monkey, Viking Global, managed by Andreas Halvorsen, holds the biggest position in Kansas City Southern (NYSE:KSU). Viking Global has a $696.5 million position in the stock, comprising 2.7% of its 13F portfolio. Coming in second is Fisher Asset Management, led by Ken Fisher, holding a $75.9 million position; 0.2% of its 13F portfolio is allocated to the company. Some other members of the smart money that hold long positions consist of Richard Chilton‘s Chilton Investment Company, Jim Simons‘ Renaissance Technologies, and Israel Englander’s Millennium Management.

Seeing as Kansas City Southern (NYSE:KSU) has witnessed declining sentiment from the smart money, it’s easy to see that there lies a certain “tier” of hedgies who were dropping their entire stakes during the March quarter. At the top of the heap, John Brennan’s Sirios Capital Management dropped the biggest stake of the more than 700 funds followed by Insider Monkey, valued at about $17.7 million in stock. John Murphy of Alydar Capital was right behind this move, as the fund sold off about $4.5 million worth of shares. These transactions are important to note, as aggregate hedge fund interest fell by four funds last quarter.

Our outlook for Kansas City Southern (NYSE:KSU) is bearish until some signs of recovery can be seen in the industry, despite the growing hedge fund investments.

Disclosure: None