Hedge Funds Aren’t Crazy About Emerson Electric Co. (EMR) Anymore

Since Emerson Electric Co. (NYSE:EMR) has witnessed falling interest from the entirety of the hedge funds we track, logic holds that there exists a select few fund managers that elected to cut their positions entirely in the third quarter. Interestingly, Clint Murray’s Lodge Hill Capital dropped the largest investment of the “upper crust” of funds monitored by Insider Monkey, comprising close to $31.3 million in stock, and Michael Messner’s Seminole Capital (Investment Mgmt) was right behind this move, as the fund said goodbye to about $20.8 million worth of stock. These transactions are interesting, as total hedge fund interest fell by 4 funds in the third quarter.

Let’s go over hedge fund activity in other stocks similar to Emerson Electric Co. (NYSE:EMR). These stocks are Charles Schwab Corp (NYSE:SCHW), Korea Electric Power Corporation (ADR) (NYSE:KEP), Constellation Brands, Inc. (NYSE:STZ), and Twenty-First Century Fox Inc (NASDAQ:FOXA). This group of stocks’ market values are similar to EMR’s market value.

As you can see these stocks had an average of 43.25 hedge funds with bullish positions and the average amount invested in these stocks was $3.26 billion. That figure was $411 million in EMR’s case. Constellation Brands, Inc. (NYSE:STZ) is the most popular stock in this table. On the other hand Korea Electric Power Corporation (ADR) (NYSE:KEP) is the least popular one with only 14 bullish hedge fund positions. Emerson Electric Co. (NYSE:EMR) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard STZ might be a better candidate to consider a long position.

Disclosure: None