5 Large-Cap Stocks Hedge Funds Are Dumping

In this article, we will look at the 5 large-cap stocks hedge funds are dumping. If you want to explore similar stocks, you can go to 15 Large-Cap Stocks Hedge Funds Are Dumping.

5. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 99

Number of Hedge Funds That Sold: 13

13 hedge funds exited their positions in The Walt Disney Company (NYSE:DIS) at the close of Q4 2022. The stock was held by 99 hedge funds in the fourth quarter of 2022. The collective stakes of these hedge funds amounted to $3.37 billion, down from $3.89 billion in Q3 2022 with 112 positions. The stock is placed fifth among the large-cap stocks hedge funds are dumping right now.

On February 9, BofA analyst Jessica Reif Ehrlich raised her price target on The Walt Disney Company (NYSE:DIS) to $135 from $115 and maintained a Buy rating on the shares.

As of December 31, Trian Partners is the leading shareholder in The Walt Disney Company (NYSE:DIS) and has a position worth $784.5 million in the company.

Here is what ClearBridge Investments had to say about The Walt Disney Company (NYSE:DIS) in its fourth-quarter 2022 investor letter:

“We exited The Walt Disney Company (NYSE:DIS) to focus on areas of the media industry with better risk/reward. Disney has significant exposure to consumer spending that is showing early signs of weakening. We decided to move on from the name as its traditional linear programming business is dissolving more quickly than expected, while its Disney+ streaming business cannot offset the affiliate fees and advertising revenue that the company has relied on for years. Disney’s parks business has done well recently due to strong pricing power but we have concerns that consumers will continue to spend on such discretionary purchases in a recessionary environment. At this point in the cycle, we believe Netflix has more ways to innovate and improve profitability.”