Hedge Funds Aren’t Crazy About Canadian Pacific Railway Limited (USA) (CP) Anymore

Because Canadian Pacific Railway Limited (USA) (NYSE:CP) has witnessed a declination in interest from the smart money, it’s easy to see that there exists a select few fund managers who sold off their entire stakes heading into Q4. At the top of the heap, David Stemerman’s Conatus Capital Management sold off the biggest position of the “upper crust” of funds followed by Insider Monkey, totaling an estimated $69 million in stock, and Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management was right behind this move, as the fund dumped about $39.8 million worth of CP shares. These transactions are intriguing to say the least, as aggregate hedge fund interest dropped by 12 funds heading into Q4.

Let’s check out hedge fund activity in other stocks similar to Canadian Pacific Railway Limited (USA) (NYSE:CP). We will take a look at Boston Scientific Corporation (NYSE:BSX), PPL Corporation (NYSE:PPL), Energy Transfer Equity, L.P. (NYSE:ETE), and Koninklijke Philips Electronics NV (ADR) (NYSE:PHG). This group of stocks’ market values resemble CP’s market value.

As you can see these stocks had an average of 24 hedge funds with bullish positions and the average amount invested in these stocks was $824 million. Boston Scientific Corporation (NYSE:BSX) is the most popular stock in this table, whereas Koninklijke Philips Electronics NV (ADR) (NYSE:PHG) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Canadian Pacific Railway Limited (USA) (NYSE:CP) is more popular among hedge funds and has also managed to attract a significantly higher amount of the hedgies’ money: $3.98 billion at the end of the quarter. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.