Are Hedge Funds Losing Their Interest in Legg Mason Inc (LM)?

Seeing as Legg Mason Inc (NYSE:LM) has weathered falling interest from the entirety of the hedge funds we track, it’s easy to see that there were a few money managers that elected to cut their full holdings during the third quarter. Interestingly, Anand Parekh’s Alyeska Investment Group said goodbye to the largest investment of the 700 funds tracked by Insider Monkey, worth about $7.6 million in stock. John D. Gillespie’s fund, Prospector Partners, also dropped its stock, about $5.6 million worth.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Legg Mason Inc(NYSE:LM) but similarly valued. We will take a look at Corelogic Inc (NYSE:CLGX), Nabors Industries Ltd. (NYSE:NBR), PRA Health Sciences Inc (NASDAQ:PRAH), and Akorn, Inc. (NASDAQ:AKRX). This group of stocks’ market valuations match LM’s market valuation.

As you can see these stocks had an average of 25 funds with bullish positions and the average amount invested in these stocks was $392 million. That figure was $516 million in LM’s case. Nabors Industries Ltd. (NYSE:NBR) is the most popular stock in this table. On the other hand Corelogic Inc (NYSE:CLGX) is the least popular one with only 19 bullish hedge fund positions. Legg Mason Inc (NYSE:LM) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Nabors Industries Ltd. (NYSE:NBR) might be a better candidate to consider taking a long position in.

Disclosure: none