Is ABB Ltd (ADR) (ABB) A Good Stock to Buy?

Seeing as ABB Ltd (ADR) (NYSE:ABB) has weathered falling interest from hedge fund managers, logic holds that there is a sect of fund managers that slashed their entire stakes by the end of the third quarter. It’s worth mentioning that Millennium Management, one of the 10 largest hedge funds in the world, cashed in the biggest position of all the hedgies studied by Insider Monkey, valued at about $3.8 million in stock, and David E. Shaw’s D E Shaw was right behind this move, as the fund dropped about $1.3 million worth of shares.

Let’s now review hedge fund activity in other stocks similar to ABB Ltd (ADR) (NYSE:ABB). These stocks are ING Groep N.V. (ADR) (NYSE:ING), General Dynamics Corporation (NYSE:GD), Dominion Resources, Inc. (NYSE:D), and FedEx Corporation (NYSE:FDX). This group of stocks’ market valuations resemble ABB’s market valuation.

As you can see these stocks had an average of 30 hedge funds with bullish positions and the average amount invested in these stocks was $2.90 billion. That figure was $190 million in ABB’s case. FedEx Corporation (NYSE:FDX) is the most popular stock in this table. On the other hand ING Groep N.V. (ADR) (NYSE:ING) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks ABB Ltd (ADR) (NYSE:ABB) is even less popular than ING. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock.

Disclosure: None