Hedge Funds Aren’t Crazy About Spectrum Brands Holdings, Inc. (SPB) Anymore

Seeing as Spectrum Brands Holdings, Inc. (NYSE:SPB) has faced a bearish sentiment from the entirety of the hedge funds we track, logic holds that there were a few money managers who were dropping their positions entirely by the end of the third quarter. It’s worth mentioning that Christian Leone’s Luxor Capital Group dumped the biggest position of the 700 funds followed by Insider Monkey, valued at close to $49.7 million in stock, and Louis Bacon’s Moore Global Investments was right behind this move, as the fund dropped about $23.1 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest fell by 4 funds by the end of the third quarter.

Let’s also examine hedge fund activity in other stocks similar to Spectrum Brands Holdings, Inc. (NYSE:SPB). These stocks are Range Resources Corp. (NYSE:RRC), Service Corporation International (NYSE:SCI), Westar Energy Inc (NYSE:WR), and Carlyle Group LP (NASDAQ:CG). This group of stocks’ market valuations matches Spectrum Brands Holdings, Inc. (NYSE:SPB)’s market valuation.

As you can see, these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $383 million. That figure was $547 million in Spectrum Brands Holdings, Inc. (NYSE:SPB)’s case. Service Corporation International (NYSE:SCI) is the most popular stock in this table. On the other hand, Westar Energy Inc (NYSE:WR) is the least popular one with only 10 bullish hedge fund positions. Spectrum Brands Holdings, Inc. (NYSE:SPB) 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, Service Corporation International (NYSE:SCI) might be a better candidate to consider a long position.