Chicago Bridge & Iron Company N.V. (CBI): Are Hedge Funds Right About This Stock?

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Because Chicago Bridge & Iron Company N.V. (NYSE:CBI) has witnessed bearish sentiment from the smart money, it’s easy to see that there is a sect of hedge funds that slashed their full holdings last quarter. It’s worth mentioning that Jim Simons’ Renaissance Technologies dropped the largest stake of all the hedgies watched by Insider Monkey, worth an estimated $19.5 million in stock, and Jonathan Barrett and Paul Segal’s Luminus Management was right behind this move, as the fund dropped about $8.6 million worth of shares. These transactions are important to note, as aggregate hedge fund interest fell by 3 funds last quarter.

Let’s also examine hedge fund activity in other stocks similar to Chicago Bridge & Iron Company N.V. (NYSE:CBI). We will take a look at Tableau Software Inc (NYSE:DATA), Synovus Financial Corp. (NYSE:SNV), The Hanover Insurance Group, Inc. (NYSE:THG), and SINA Corp (NASDAQ:SINA). This group of stocks’ market valuations match CBI’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
DATA 29 898953 -5
SNV 21 454718 -1
THG 16 172459 -3
SINA 33 796653 12

As you can see these stocks had an average of 24.75 hedge funds with bullish positions and the average amount invested in these stocks was $581 million. That figure was $337 million in CBI’s case. SINA Corp (NASDAQ:SINA) is the most popular stock in this table. On the other hand The Hanover Insurance Group, Inc. (NYSE:THG) is the least popular one with only 16 bullish hedge fund positions. Chicago Bridge & Iron Company N.V. (NYSE:CBI) 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 SINA might be a better candidate to consider taking a long position in.

Disclosure: None

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