Is AmerisourceBergen Corp. (ABC) Going to Burn These Hedge Funds?

Seeing as AmerisourceBergen Corp. (NYSE:ABC) has witnessed a decline in interest from hedge fund managers, we can see that there was a specific group of funds who were dropping their full holdings in the third quarter. Intriguingly, Stephen DuBois’s Camber Capital Management sold off the largest stake of all the hedgies followed by Insider Monkey, worth close to $49.6 million in stock, and Glenn Russell Dubin’s Highbridge Capital Management was right behind this move, as the fund dropped about $43.7 million worth of shares. These transactions are important to note, as total hedge fund interest fell by 5 funds in the third quarter.

Let’s check out hedge fund activity in other stocks similar to AmerisourceBergen Corp. (NYSE:ABC). We will take a look at Delphi Automotive PLC (NYSE:DLPH), Tenaris S.A. (ADR) (NYSE:TS), Continental Resources, Inc. (NYSE:CLR), and Mead Johnson Nutrition CO (NYSE:MJN). This group of stocks’ market values match ABC’s market value.

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 $538 million. That figure was $880 million in ABC’s case. Continental Resources, Inc. (NYSE:CLR) is the most popular stock in this table. On the other hand Tenaris S.A. (ADR) (NYSE:TS) is the least popular one with only 10 bullish hedge fund positions. AmerisourceBergen Corp. (NYSE:ABC) 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 CLR might be a better candidate to consider a long position.