Honeywell International Inc. (HON) Improves EPS Guidance After Strong Second Quarter

How have hedgies been trading Honeywell International Inc. (NYSE:HON)?

Heading into the second quarter, a total of 48 of the hedge funds tracked by Insider Monkey were long in this stock, with no change from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their holdings substantially.

According to hedge fund intelligence website Insider Monkey, Adage Capital Management, managed by Phill Gross and Robert Atchinson, holds the largest position in Honeywell International Inc. (NYSE:HON). Adage Capital Management has a $351.5 million position in the stock with 3.37 million shares, comprising 0.9% of its 13F portfolio. Coming in second is GAMCO Investors, led by Mario Gabelli, holding a $228.47 million position of 2.19 million shares; the fund has 1.19% of its 13F portfolio invested in the stock. Other members of the smart money with similar optimism include Cliff Asness’ AQR Capital Management, Robert Polak’s Anchor Bolt Capital, and Alexander Mitchell’s Scopus Asset Management.

During the first quarter, some of the leading hedge fund managers cut their positions in Honeywell International. At the top of the heap, Jim Simons’ Renaissance Technologies sold off the largest investment of the “upper crust” of funds tracked by Insider Monkey, comprising close to $19.9 million in stock. David E. Shaw’s fund, D E Shaw, also cut its stock, about $15.1 million worth. These bearish behaviors are interesting, as total hedge fund interest stayed the same, though the funds tracked by Insider Monkey collectively bought more shares of the company.

A solid second quarter and positive sentiment among hedge fund investors indicate growth in the upcoming months. We recommend a buy for the shares of the company.

Disclosure: None