Is CNH Industrial NV (CNHI) the Right Stock for Your Portfolio?

Seeing as CNH Industrial NV (NYSE:CNHI) has witnessed bearish sentiment from hedge fund managers, it’s easy to see that there is a sect of funds who sold off their full holdings last quarter. At the top of the heap, Jacob Gottlieb’s Visium Asset Management cut the largest stake of all the hedgies followed by Insider Monkey, totaling an estimated $3.1 million in stock, and Bruce Kovner’s Caxton Associates LP was right behind this move, as the fund cut about $2.3 million worth of shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as CNH Industrial NV (NYSE:CNHI) but similarly valued. These stocks are Kansas City Southern (NYSE:KSU), Restaurant Brands International Inc (NYSE:QSR), LKQ Corporation (NASDAQ:LKQ), and Discovery Communications Inc. (NASDAQ:DISCK). This group of stocks’ market caps match CNHI’s market cap.

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 $1.25 billion. That figure was $407 million in CNHI’s case. Kansas City Southern (NYSE:KSU) is the most popular stock in this table. On the other hand Discovery Communications Inc. (NASDAQ:DISCK) is the least popular one with only 21 bullish hedge fund positions. Compared to these stocks CNH Industrial NV (NYSE:CNHI) is even less popular than DISCK. 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