Hedge Funds Aren’t Crazy About Syntel, Inc. (SYNT) Anymore

Because Syntel, Inc. (NASDAQ:SYNT) has weathered declining sentiment from the entirety of the hedge funds we track, we can see that there is a sect of hedge funds that decided to sell off their full holdings heading into Q4. At the top of the heap, Anand Parekh’s Alyeska Investment Group sold off the biggest investment of all the investors studied by Insider Monkey, valued at close to $10.9 million in stock, and Peter Muller’s PDT Partners was right behind this move, as the fund sold off about $1.2 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks similar to Syntel, Inc. (NASDAQ:SYNT). These stocks are Compania de Minas Buenaventura SA (ADR) (NYSE:BVN), Shopify Inc (NYSE:SHOP), AU Optronics Corp. (ADR) (NYSE:AUO), and First Citizens BancShares Inc. (NASDAQ:FCNCA). This group of stocks’ market valuations are similar to SYNT’s market valuation.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $173 million. That figure was $54 million in SYNT’s case. Shopify Inc (NYSE:SHOP) is the most popular stock in this table. On the other hand Compania de Minas Buenaventura SA (ADR) (NYSE:BVN) is the least popular one with only 8 bullish hedge fund positions. Syntel, Inc. (NASDAQ:SYNT) 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 SHOP might be a better candidate to consider taking a long position in.

Disclosure: None