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Alcoa Inc (AA) Drops Before Missing Q2 Earnings, Beating Revenue Estimates

Hedge fund activity in Alcoa Inc (NYSE:AA)

Among the hedge funds followed by Insider Monkey, Robert Rodriguez and Steven Romick‘s First Pacific Advisors LLC had the biggest position in Alcoa Inc (NYSE:AA), with 22.14 million shares worth close to $286 million, and corresponding to 2.4% of its total 13F portfolio. Sitting in second is William B. Gray of Orbis Investment Management, with a $264.5 million position of 20.47 million shares; 2.1% of his 13F portfolio is allocated to the stock. Other hedge funds that are bullish include Kerr Neilson’s Platinum Asset Management, David E. Shaw’s D.E. Shaw & Co., L.P., and Israel Englander’s Millennium Management.

Since Alcoa Inc (NYSE:AA) experienced a decline in sentiment from the entirety of the hedge funds we track, we can see that there were a few who sold off their full holdings in the first quarter. Interestingly, Steve Cohen‘s Point72 Asset Management cut the biggest position of all the hedgies tracked by Insider Monkey, 2.65 million shares totaling close to $41.8 million in stock. Stanley Druckenmiller of Duquesne Capital was right behind this move, as the fund sold off 1.88 million shares worth about $29.6 million; two clear warning signs, as two of the best in the business made big exits from the stock.

Because of the earnings miss and the bearish sentiment of smart money on Alcoa Inc (NYSE:AA), we do not recommend a long position in the stock, though we suspect the floor is very near and there is certainly upside potential in it.

Disclosure: None

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