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Archer Daniels Midland Company (ADM): Hedge Fund Ownership Going Nowhere

Judging by the fact that Archer Daniels Midland Company (NYSE:ADM) has faced falling interest from hedge fund managers, it’s easy to see that there was a specific group of hedge funds that elected to cut their entire stakes by the end of the third quarter. Interestingly, Ken Griffin’s Citadel Investment Group cut the largest investment of the “upper crust” of funds monitored by Insider Monkey, valued at close to $12 million in stock. William Harnisch’s fund, Peconic Partners LLC, also said goodbye to its stock, about $9.3 million worth. These moves are important to note, as aggregate hedge fund interest fell by 2 funds by the end of the third quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Archer Daniels Midland Company (NYSE:ADM) but similarly valued. These stocks are Equity Residential (NYSE:EQR), Norfolk Southern Corp. (NYSE:NSC), Intuitive Surgical, Inc. (NASDAQ:ISRG), and NVIDIA Corporation (NASDAQ:NVDA). All of these stocks’ market caps match ADM’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
EQR 20 794112 -5
NSC 36 758740 4
ISRG 33 1266473 2
NVDA 51 1900101 1

As you can see these stocks had an average of 35 hedge funds with bullish positions and the average amount invested in these stocks was $1.18 billion. That figure was $676 million in ADM’s case. NVIDIA Corporation (NASDAQ:NVDA) is the most popular stock in this table. On the other hand Equity Residential (NYSE:EQR) is the least popular one with only 20 bullish hedge fund positions. Archer Daniels Midland Company (NYSE:ADM) 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 NVDA might be a better candidate to consider a long position.

Disclosure: None

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