Do Hedge Funds Love Lennox International Inc. (LII)?

Since Lennox International Inc. (NYSE:LII) has faced a declination in interest from the aggregate hedge fund industry, it’s safe to say that there lies a certain “tier” of hedge funds that decided to sell off their positions entirely in the third quarter. Interestingly, Alexander Mitchell’s Scopus Asset Management sold off the biggest position of all the hedgies followed by Insider Monkey, comprising close to $38.5 million in stock. Ken Griffin’s fund, Citadel Investment Group, also dropped its stock, about $28.4 million worth. These bearish behaviors are important to note, as total hedge fund interest was cut by 5 funds in the third quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Lennox International Inc. (NYSE:LII) but similarly valued. These stocks are Helmerich & Payne, Inc. (NYSE:HP), Genpact Limited (NYSE:G), ADT Corp (NYSE:ADT), and FireEye Inc (NASDAQ:FEYE). All of these stocks’ market caps are closest to LII’s market cap.

As you can see these stocks had an average of 25.75 hedge funds with bullish positions and the average amount invested in these stocks was $335 million. That figure was $130 million in LII’s case. FireEye Inc (NASDAQ:FEYE) is the most popular stock in this table. On the other hand Genpact Limited (NYSE:G) is the least popular one with only 17 bullish hedge fund positions. Lennox International Inc. (NYSE:LII) 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 FEYE might be a better candidate to consider a long position.