Hedge Funds Are Dumping United Technologies Corporation (UTX)

Seeing as United Technologies Corporation (NYSE:UTX) has faced a falling interest from the smart money, it’s easy to see that there is a sect of hedgies that decided to sell off their positions entirely last quarter. Intriguingly, Gordy Holterman and Derek Dunn’s Overland Advisors cut the largest stake of the “upper crust” of funds followed by Insider Monkey, valued at close to $129 million in stock. Bart Baum’s fund, Ionic Capital Management, also sold off its stock, about $57 million worth of shares. These moves are intriguing to say the least, as aggregate hedge fund interest dropped by 9 funds last quarter.

Let’s also examine hedge fund activity in other stocks similar to United Technologies Corporation (NYSE:UTX). We will take a look at SAP AG (ADR) (NYSE:SAP), Ambev SA (ADR) (NYSE:ABEV), Union Pacific Corporation (NYSE:UNP), and Banco Santander, S.A. (ADR) (NYSE:SAN). This group of stocks’ market values is similar to United Technologies Corporation (NYSE:UTX)’s market value.

As you can see, these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $674 million. That figure was $2.75 billion in United Technologies Corporation (NYSE:UTX)’s case. Union Pacific Corporation (NYSE:UNP) is the most popular stock in this table. On the other hand, SAP AG (ADR) (NYSE:SAP) is the least popular one with only 11 bullish hedge fund positions. United Technologies Corporation (NYSE:UTX) 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, United Technologies Corporation (NYSE:UTX) might be a better candidate to consider a long position.