Be Warned Of Sinking Smart Money Ownership Of Mobileye NV (MBLY)

Since Mobileye NV (NYSE:MBLY) has faced a declination in interest from the entirety of the hedge funds we track, we can see that there lies a certain “tier” of funds who were dropping their entire stakes last quarter. Interestingly, Doug Silverman and Alexander Klabin’s Senator Investment Group dumped the largest position of the 700 funds monitored by Insider Monkey, valued at an estimated $77.1 million in stock. Alexander Mitchell’s fund, Scopus Asset Management, also dropped its stock, about $37.8 million worth. These moves are intriguing to say the least, as total hedge fund interest dropped by 7 funds last quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Mobileye NV (NYSE:MBLY). These stocks are Ally Financial Inc (NYSE:ALLY), CMS Energy Corporation (NYSE:CMS), Coty Inc (NYSE:COTY), and Vipshop Holdings Ltd – ADR (NYSE:VIPS). All of these stocks’ market caps are closest to Mobileye NV’s market cap.

As you can see these stocks had an average of 34.5 hedge funds with bullish positions and the average amount invested in these stocks was $1.37 billion. That figure was $705 million in Mobileye NV’s case. Ally Financial Inc (NYSE:ALLY) is the most popular stock in this table. On the other hand CMS Energy Corporation (NYSE:CMS) is the least popular one with only 18 bullish hedge fund positions. Mobileye NV (NYSE:MBLY) is not the least popular stock in this group but hedge fund interest is still below average and falling. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Ally Financial might be a better candidate to consider a long position in.