Should You Avoid Haemonetics Corporation (HAE)?

Judging by the fact that Haemonetics Corporation (NYSE:HAE) has faced falling interest from hedge fund managers, we can see that there was a specific group of hedgies that slashed their entire stakes by the end of the third quarter. It’s worth mentioning that Joel Greenblatt’s Gotham Asset Management cut the largest position of all the investors tracked by Insider Monkey, comprising about $1.1 million in stock. Paul Marshall and Ian Wace’s fund, Marshall Wace LLP, also cut its stock, about $0.8 million worth.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Haemonetics Corporation (NYSE:HAE) but similarly valued. These stocks are Commercial Metals Company (NYSE:CMC), KLX Inc (NASDAQ:KLXI), Mueller Industries, Inc. (NYSE:MLI), and Ebix Inc (NASDAQ:EBIX). This group of stocks’ market valuations resemble HAE’s market valuation.

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $246 million. That figure was $113 million in HAE’s case. KLX Inc (NASDAQ:KLXI) is the most popular stock in this table. On the other hand Mueller Industries, Inc. (NYSE:MLI) is the least popular one with only 15 bullish hedge fund positions. Haemonetics Corporation (NYSE:HAE) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard KLXI might be a better candidate to consider taking a long position in.

Disclosure: None