Hedge Funds Are Dumping Reliance Steel & Aluminum Co (RS) Too

Since Reliance Steel & Aluminum Co (NYSE:RS) has experienced falling interest from the entirety of the hedge funds we track, it’s easy to see that there lies a certain “tier” of funds that elected to cut their entire stakes in the third quarter. Interestingly, billionaire Jorge Paulo Lemann’s 3G Capital said goodbye to the largest investment of all the hedgies monitored by Insider Monkey, comprising close to $38.5 million in stock, and billionaire Bruce Kovner’s Caxton Associates LP was right behind this move, as the fund cut about $10.8 million worth. These transactions are important to note, as total hedge fund interest was cut by 5 funds in the third quarter.

Let’s also examine hedge fund activity in other stocks similar to Reliance Steel & Aluminum Co (NYSE:RS). We will take a look at Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL), West Pharmaceutical Services Inc. (NYSE:WST), EnLink Midstream Partners LP (NYSE:ENLK), and KKR & Co. L.P. (NYSE:KKR). This group of stocks’ market values are closest to RS’s market value.

As you can see these stocks had an average of 13.5 hedge funds with bullish positions and the average amount invested in these stocks was $241 million. That figure was $440 million in RS’s case. KKR & Co. L.P. (NYSE:KKR) is the most popular stock in this table. On the other hand Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL) is the least popular one with only 6 bullish hedge fund positions. Reliance Steel & Aluminum Co (NYSE:RS) 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 KKR might be a better candidate to consider a long position.