Booz Allen Hamilton Holding Corporation (BAH): Are Hedge Funds Right About This Stock?

Due to the fact that Booz Allen Hamilton Holding Corporation (NYSE:BAH) has faced declining sentiment from hedge fund managers, it’s safe to say that there is a sect of money managers who were dropping their full holdings by the end of the third quarter. It’s worth mentioning that Joel Greenblatt’s Gotham Asset Management dumped the largest position of the “upper crust” of funds followed by Insider Monkey, totaling close to $20.8 million in stock. Glenn Russell Dubin’s fund, Highbridge Capital Management, also dumped its stock, about $10.7 million worth. These moves are interesting, as total hedge fund interest was cut by 8 funds by the end of the third quarter.

Let’s now review hedge fund activity in other stocks similar to Booz Allen Hamilton Holding Corporation (NYSE:BAH). These stocks are Senior Housing Properties Trust (NYSE:SNH), Oceaneering International (NYSE:OII), Vedanta Ltd (ADR) (NYSE:VEDL), and Erie Indemnity Company (NASDAQ:ERIE). This group of stocks’ market valuations match BAH’s market valuation.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $75 million. That figure was $152 million in BAH’s case. Oceaneering International (NYSE:OII) is the most popular stock in this table. On the other hand Vedanta Ltd (ADR) (NYSE:VEDL) is the least popular one with only 8 bullish hedge fund positions. Booz Allen Hamilton Holding Corporation (NYSE:BAH) 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 OII might be a better candidate to consider a long position.