Due to the fact that ARM Holdings plc (ADR) (NASDAQ:ARMH) has faced a declination in interest from the aggregate hedge fund industry, it’s easy to see that there is a sect of money managers who sold off their entire stakes heading into Q4. It’s worth mentioning that D. E. Shaw’s D E Shaw dumped the largest investment of the 700 funds monitored by Insider Monkey, totaling close to $14.2 million in stock, and John Burbank’s Passport Capital was right behind this move, as the fund dropped about $8.1 million worth of shares. These moves are intriguing to say the least, as total hedge fund interest was cut by 4 funds heading into Q4.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as ARM Holdings plc (ADR) (NASDAQ:ARMH) but similarly valued. These stocks are Fiserv, Inc. (NASDAQ:FISV), Aviva Plc (ADR) (NYSE:AV), NXP Semiconductors NV (NASDAQ:NXPI), and The Hershey Company (NYSE:HSY). This group of stocks’ market values are similar to ARMH’s market value.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was a little over $1 billion. That figure was just $244 million in ARMH’s case. NXP Semiconductors NV (NASDAQ:NXPI) is the most popular stock in this table, while Aviva Plc (ADR) (NYSE:AV) is the laggard with only 7 bullish hedge fund positions. ARM Holdings plc (ADR) (NASDAQ:ARMH) 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 NXPI might be a better candidate to consider a long position.