Is United Technologies Corporation (UTX) Going to Burn These Hedge Funds?

Since United Technologies Corporation (NYSE:UTX) has witnessed bearish sentiment from hedge fund managers, it’s easy to see that there was a specific group of hedgies who sold off their positions entirely heading into Q4. It’s worth mentioning that Steve Cohen’s Point72 Asset Management sold off the largest investment of all the hedgies watched by Insider Monkey, valued at about $51.2 million in call options, and Gordy Holterman and Derek Dunn’s Overland Advisors was right behind this move, as the fund dumped about $25.6 million worth. These transactions are interesting, as total hedge fund interest fell by 8 funds heading into Q4.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as United Technologies Corporation (NYSE:UTX) but similarly valued. These stocks are Starbucks Corporation (NASDAQ:SBUX), The Boeing Company (NYSE:BA), Toronto-Dominion Bank (USA) (NYSE:TD), and QUALCOMM, Inc. (NASDAQ:QCOM). This group of stocks’ market values are closest to UTX’s market value.

As you can see these stocks had an average of 42.75 hedge funds with bullish positions and the average amount invested in these stocks was $1.85 billion. That figure was $3.55 billion in UTX’s case. QUALCOMM, Inc. (NASDAQ:QCOM) is the most popular stock in this table. On the other hand Toronto-Dominion Bank (USA) (NYSE:TD) is the least popular one with only 17 bullish hedge fund positions. United Technologies Corporation (NYSE:UTX) 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 QCOM might be a better candidate to consider a long position.