Is Hill-Rom Holdings, Inc. (HRC) Going to Burn These Hedge Funds?

Because Hill-Rom Holdings, Inc. (NYSE:HRC) has faced bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there lies a certain “tier” of fund managers that decided to sell off their positions entirely in the third quarter. At the top of the heap, Steve Cohen’s Point72 Asset Management said goodbye to the largest position of all the hedgies tracked by Insider Monkey, totaling an estimated $6.7 million in stock, and Paul Marshall and Ian Wace’s Marshall Wace LLP was right behind this move, as the fund sold off about $4 million worth. These moves are intriguing to say the least, as total hedge fund interest dropped by 1 funds in the third quarter.

Let’s also examine hedge fund activity in other stocks similar to Hill-Rom Holdings, Inc. (NYSE:HRC). These stocks are Boardwalk Pipeline Partners, LP (NYSE:BWP), Cedar Fair, L.P. (NYSE:FUN), Cobalt International Energy, Inc. (NYSE:CIE), and Curtiss-Wright Corp. (NYSE:CW). This group of stocks’ market caps are similar to HRC’s market cap.

As you can see these stocks had an average of 15.5 hedge funds with bullish positions and the average amount invested in these stocks was $371 million. That figure was $340 million in HRC’s case. Cobalt International Energy, Inc. (NYSE:CIE) is the most popular stock in this table. On the other hand Cedar Fair, L.P. (NYSE:FUN) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Hill-Rom Holdings, Inc. (NYSE:HRC) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.