Do Hedge Funds Love Danaher Corporation (DHR)?

At the top of the heap, Doug Silverman and Alexander Klabin’s Senator Investment Group cut the largest stake of the “upper crust” of funds tracked by Insider Monkey, worth about $385.2 million in stock, and Robert Henry Lynch’s Aristeia Capital was right behind this move, as the fund dumped about $199.6 million worth. These transactions are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Danaher Corporation (NYSE:DHR) but similarly valued. These stocks are Colgate-Palmolive Company (NYSE:CL), Simon Property Group, Inc (NYSE:SPG), Time Warner Inc (NYSE:TWX), and Telefonica S.A. (ADR) (NYSE:TEF). This group of stocks’ market valuations are similar to DHR’s market valuation.

As you can see these stocks had an average of 33.75 hedge funds with bullish positions and the average amount invested in these stocks was $1,825 million. That figure was $1,976 million in DHR’s case. Time Warner Inc (NYSE:TWX) is the most popular stock in this table. On the other hand Telefonica S.A. (ADR) (NYSE:TEF) is the least popular one with only 5 bullish hedge fund positions. Danaher Corporation (NYSE:DHR) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard TWX might be a better candidate to consider a long position.