Because Acuity Brands, Inc. (NYSE:AYI) has witnessed falling interest from the aggregate hedge fund industry, it’s safe to say that there is a sect of hedge funds that slashed their entire stakes heading into Q4. Interestingly, Ken Griffin’s Citadel Investment Group cut the biggest position of the 700 funds tracked by Insider Monkey, valued at about $10.4 million in stock. Paul Marshall and Ian Wace’s fund, Marshall Wace LLP, also dumped its stock, about $6.9 million worth. These transactions are important to note, as aggregate hedge fund interest fell by 2 funds heading into Q4.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Acuity Brands, Inc. (NYSE:AYI) but similarly valued. We will take a look at Vantiv Inc (NYSE:VNTV), SCANA Corporation (NYSE:SCG), ServiceNow Inc (NYSE:NOW), and AMETEK, Inc. (NYSE:AME). This group of stocks’ market caps are similar to AYI’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 26.25 hedge funds with bullish positions and the average amount invested in these stocks was $722 million. That figure was $577 million in AYI’s case. ServiceNow Inc (NYSE:NOW) is the most popular stock in this table. On the other hand SCANA Corporation (NYSE:SCG) is the least popular one with only 18 bullish hedge fund positions. Acuity Brands, Inc. (NYSE:AYI) 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 NOW might be a better candidate to consider a long position in.