Should You Avoid FleetCor Technologies, Inc. (FLT)?

Because FleetCor Technologies, Inc. (NYSE:FLT) has faced declining sentiment from the aggregate hedge fund industry, we can see that there lies a certain “tier” of funds who were dropping their full holdings in the third quarter. Interestingly, Eric W. Mandelblatt’s Soroban Capital Partners dropped the largest position of the 700 funds tracked by Insider Monkey, totaling close to $164.6 million in stock. Aaron Cowen’s fund, Suvretta Capital Management, also dropped its stock, about $75 million worth. These moves are important to note, as total hedge fund interest fell by 2 funds in the third quarter.

Let’s now take a look at hedge fund activity in other stocks similar to FleetCor Technologies, Inc. (NYSE:FLT). These stocks are AMETEK, Inc. (NYSE:AME), Alcoa Inc (NYSE:AA), Cenovus Energy Inc (USA) (NYSE:CVE), and Citizens Financial Group Inc (NYSE:CFG). This group of stocks’ market values match FLT’s market value.

As you can see these stocks had an average of 33.5 hedge funds with bullish positions and the average amount invested in these stocks was $1,122 million. That figure was $4,800 million in FLT’s case. Citizens Financial Group Inc (NYSE:CFG) is the most popular stock in this table. On the other hand AMETEK, Inc. (NYSE:AME) is the least popular one with only 16 bullish hedge fund positions. FleetCor Technologies, Inc. (NYSE:FLT) 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 CFG might be a better candidate to consider a long position.