Do Hedge Funds Love Henry Schein, Inc. (HSIC)?

Due to the fact that Henry Schein, Inc. (NASDAQ:HSIC) has experienced no change in sentiment from the aggregate hedge fund industry, we should take a look at a sect of hedge funds who were dropping their full holdings last quarter. Intriguingly, Brad Dunkley and Blair Levinsky’s Waratah Capital Advisors dumped the biggest stake of the 700 funds followed by Insider Monkey, totaling close to $15.3 million in stock. Jim Simons’ Renaissance Technologies also said goodbye to its stock, about $10.1 million worth of HSIC shares. These transactions are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s go over hedge fund activity in other stocks similar to Henry Schein, Inc. (NASDAQ:HSIC). We will take a look at Royal Caribbean Cruises Ltd. (NYSE:RCL), Agilent Technologies Inc. (NYSE:A), Interactive Brokers Group, Inc. (NASDAQ:IBKR), and Viacom, Inc. (NASDAQ:VIAB). All of these stocks’ market caps resemble HSIC’s market cap.

As you can see these stocks had an average of 34 hedge funds with bullish positions and the average amount invested in these stocks was $970 million. That figure was $388 million in HSIC’s case. Viacom, Inc. (NASDAQ:VIAB) is the most popular stock in this table. On the other hand Royal Caribbean Cruises Ltd. (NYSE:RCL) and Interactive Brokers Group, Inc. (NASDAQ:IBKR) are the least popular ones with only 26 bullish hedge fund positions each. Compared to these stocks Henry Schein, Inc. (NASDAQ:HSIC) is even less popular than RCL. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

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Disclosure: None