Is Alcoa Corporation (AA) A Good Stock To Buy According To Hedge Funds?

Seeing as Alcoa Corporation (NYSE:AA) has witnessed falling interest from the aggregate hedge fund industry, we can see that there was a specific group of funds who sold off their full holdings in the third quarter. At the top of the heap, David Greenspan’s Slate Path Capital cut the largest investment of the “upper crust” of funds watched by Insider Monkey, totaling close to $65 million in stock. Billionaire investor Stan Druckenmiller also sold out his $31 million position during the third quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Alcoa Corporation (NYSE:AA) but similarly valued. These stocks are Henry Schein, Inc. (NASDAQ:HSIC), American Water Works Co., Inc. (NYSE:AWK), Citrix Systems, Inc. (NASDAQ:CTXS), and Viacom, Inc. (NASDAQ:VIAB). This group of stocks’ market values resemble AA’s market value.

As you can see these stocks had an average of 32 hedge funds with bullish positions and the average amount invested in these stocks was $823 million. That figure was $2.33 billion in AA’s case. Viacom, Inc. (NASDAQ:VIAB) is the most popular stock in this table. On the other hand Henry Schein, Inc. (NASDAQ:HSIC) is the least popular one with only 23 bullish hedge fund positions. Alcoa Corporation (NYSE:AA) 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 VIAB might be a better candidate to consider taking a long position in.

Disclosure: None