Should You Be Concerned About Diamond Offshore Drilling Inc (DO)’s Falling Hedge Fund Ownership?

Seeing as Diamond Offshore Drilling Inc (NYSE:DO) has experienced falling interest from hedge fund managers, we can see that there is a sect of hedge funds who sold off their entire stakes heading into Q4. At the top of the heap, Jim Simons’ Renaissance Technologies dropped the biggest position of the 700 funds monitored by Insider Monkey, comprising an estimated $4 million in stock, and David Costen Haley’s HBK Investments was right behind this move, as the fund said goodbye to about $2.7 million worth of shares. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 1 fund heading into Q4.

Let’s go over hedge fund activity in other stocks similar to Diamond Offshore Drilling Inc (NYSE:DO). These stocks are Outfront Media Inc (NYSE:OUT), Quanta Services Inc (NYSE:PWR), PAREXEL International Corporation (NASDAQ:PRXL), and Companhia Siderurgica Nacional (ADR) (NYSE:SID). All of these stocks’ market caps match DO’s market cap.

As you can see these stocks had an average of 15.75 hedge funds with bullish positions and the average amount invested in these stocks was $214 million. That figure was $161 million in DO’s case. Quanta Services Inc (NYSE:PWR) is the most popular stock in this table. On the other hand Companhia Siderurgica Nacional (ADR) (NYSE:SID) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Diamond Offshore Drilling Inc (NYSE:DO) 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, bearing in mind the sliding ownership of it.

Disclosure: None