Here is What Hedge Funds Think About Catalent Inc (CTLT)

Judging by the fact that Catalent Inc (NYSE:CTLT) has experienced falling interest from hedge fund managers, we can see that there exists a select few money managers who were dropping their full holdings heading into Q4. It’s worth mentioning that Ken Griffin’s Citadel Investment Group said goodbye to the largest investment of the 700 funds followed by Insider Monkey, comprising about $49.1 million in stock, and Paul Marshall and Ian Wace’s Marshall Wace LLP was right behind this move, as the fund cut about $2.1 million worth of shares. These transactions are interesting, as total hedge fund interest was cut by 3 funds heading into Q4.

Let’s check out hedge fund activity in other stocks similar to Catalent Inc (NYSE:CTLT). We will take a look at HSN, Inc. (NASDAQ:HSNI), New Residential Investment Corp (NYSE:NRZ), PrivateBancorp Inc (NASDAQ:PVTB), and Federated Investors Inc (NYSE:FII). This group of stocks’ market valuations resemble CTLT’s market valuation.

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $310 million. That figure was $46 million in CTLT’s case. New Residential Investment Corp (NYSE:NRZ) is the most popular stock in this table. On the other hand HSN, Inc. (NASDAQ:HSNI) is the least popular one with only 10 bullish hedge fund positions. Catalent Inc (NYSE:CTLT) 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 NRZ might be a better candidate to consider a long position.