Watsco Inc (WSO): Are Hedge Funds Right About This Stock?

Judging by the fact that Watsco Inc (NYSE:WSO) has weathered falling interest from the entirety of the hedge funds we track, we can see that there exists a select few hedgies who sold off their entire stakes heading into the fourth quarter. Interestingly, Phill Gross and Robert Atchinson’s Adage Capital Management got rid of the largest stake of the “upper crust” of funds watched by Insider Monkey, valued at close to $3.6 million in stock, and John A. Levin’s Levin Capital Strategies was right behind this move, as the fund said goodbye to about $1.1 million worth of shares.

Let’s check out hedge fund activity in other stocks similar to Watsco Inc (NYSE:WSO). We will take a look at Orbital ATK Inc (NYSE:OA), Weatherford International Ltd (NYSE:WFT), First Solar, Inc. (NASDAQ:FSLR), and Keysight Technologies Inc (NYSE:KEYS). This group of stocks’ market caps are similar to WSO’s market cap.

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $371 million. That figure was $160 million in WSO’s case. Orbital ATK Inc (NYSE:OA) is the most popular stock in this table. On the other hand Keysight Technologies Inc (NYSE:KEYS) is the least popular one with only 14 bullish hedge fund positions. Watsco Inc (NYSE:WSO) 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 OA might be a better candidate to consider taking a long position in.

Disclosure: None