Elite Investors Losing Their Taste For The Hershey Company (HSY)

Since The Hershey Company (NYSE:HSY) has witnessed falling interest from hedge fund managers, we can see that there exists a select few fund managers that elected to cut their entire stakes last quarter. It’s worth mentioning that Joel Greenblatt’s Gotham Asset Management dropped the biggest stake of all the hedgies monitored by Insider Monkey, worth about $34.6 million in stock. Israel Englander’s fund, Millennium Management, also said goodbye to its stock, about $33.8 million worth. These transactions are interesting, as total hedge fund interest fell by 6 funds last quarter.

Let’s now review hedge fund activity in other stocks similar to The Hershey Company (NYSE:HSY). We will take a look at United Continental Holdings Inc (NYSE:UAL), Brown-Forman Corporation (NYSE:BF), Incyte Corporation (NASDAQ:INCY), and Sirius XM Holdings Inc. (NASDAQ:SIRI). All of these stocks’ market caps match The Hershey Company’s market cap.

As you can see these stocks had an average of 42 hedge funds with bullish positions and the average amount invested in these stocks was $2.06 billion. That figure was $457 million in The Hershey Company’s case. United Continental Holdings Inc (NYSE:UAL) is the most popular stock in this table. On the other hand Brown-Forman Corporation (NYSE:BF) is the least popular one with only 23 bullish hedge fund positions. Compared to these stocks The Hershey Company (NYSE:HSY) is even less popular than Brown-Forman, in addition to having less money invested in it than any of the other stocks, and declining sentiment on top of that. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock.