Do Hedge Funds Love Science Applications International Corp (SAIC)?

Seeing as Science Applications International Corp (NYSE:SAIC) has sustained declining sentiment from the aggregate hedge fund industry, it’s safe to say that there were a few money managers that elected to cut their full holdings by the end of the third quarter. At the top of the heap, John Overdeck and David Siegel’s Two Sigma Advisors dropped the largest stake of all the investors tracked by Insider Monkey, totaling close to $1.3 million in stock. Paul Tudor Jones’ fund, Tudor Investment Corp, also dropped its stock, about $1.2 million worth.

Let’s now review hedge fund activity in other stocks similar to Science Applications International Corp (NYSE:SAIC). These stocks are United Bankshares, Inc. (NASDAQ:UBSI), Sunstone Hotel Investors Inc (NYSE:SHO), Methanex Corporation (USA) (NASDAQ:MEOH), and Manchester United PLC (NYSE:MANU). This group of stocks’ market caps are closest to SAIC’s market cap.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $69 million. That figure was $80 million in SAIC’s case. Methanex Corporation (USA) (NASDAQ:MEOH) is the most popular stock in this table. On the other hand Sunstone Hotel Investors Inc (NYSE:SHO) is the least popular one with only 7 bullish hedge fund positions. Science Applications International Corp (NYSE:SAIC) 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 MEOH might be a better candidate to consider taking a long position in.

Disclosure: None