Should You Add Snap-on Incorporated (SNA) to Your Portfolio?

Seeing as Snap-on Incorporated (NYSE:SNA) has witnessed a decline in interest from the smart money, we can see that there lies a certain “tier” of fund managers that slashed their full holdings during the third quarter. At the top of the heap, Robert Vollero and Gentry T. Beach’s Vollero Beach Capital Partners said goodbye to the largest stake of the 700 funds followed by Insider Monkey, worth an estimated $7.5 million in call options, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund cut about $2.5 million worth of stock.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Snap-on Incorporated (NYSE:SNA) but similarly valued. We will take a look at Vereit Inc (NYSE:VER), Buckeye Partners, L.P. (NYSE:BPL), Mosaic Co (NYSE:MOS), and J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT). This group of stocks’ market values are similar to SNA’s market value.

As you can see these stocks had an average of 24 funds with bullish positions and the average amount invested in these stocks was $357 million, compared to $652 million in SNA’s case. J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) is the most popular stock in this table. On the other hand Buckeye Partners, L.P. (NYSE:BPL) is the least popular one with only 13 investors reporting long positions. Snap-on Incorporated (NYSE:SNA) 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 J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) might be a better candidate to consider a long position.

Disclosure: None