Do Hedge Funds Love Spirit AeroSystems Holdings, Inc. (SPR)?

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Due to the fact that Spirit AeroSystems Holdings, Inc. (NYSE:SPR) has experienced a decline in interest from the smart money, logic holds that there was a specific group of money managers who sold off their entire stakes by the end of the third quarter. At the top of the heap, Yen Liow’s Aravt Global cut the largest stake of the “upper crust” of funds tracked by Insider Monkey, totaling about $73.1 million in stock, and Alex Duran and Scott Hendrickson’s Permian Investment Partners was right behind this move, as the fund dumped about $31.6 million worth of SPR shares. These moves are interesting, as total hedge fund interest fell by 4 funds by the end of the third quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Spirit AeroSystems Holdings, Inc. (NYSE:SPR) but similarly valued. We will take a look at Arrow Electronics, Inc. (NYSE:ARW), Seattle Genetics, Inc. (NASDAQ:SGEN), Genpact Limited (NYSE:G), and CF Industries Holdings, Inc. (NYSE:CF). This group of stocks’ market values are similar to SPR’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ARW 18 341456 -5
SGEN 23 2632735 3
G 22 428493 3
CF 38 1022137 4

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $1.11 billion. That figure was $2.03 billion in SPR’s case. CF Industries Holdings, Inc. (NYSE:CF) is the most popular stock in this table. On the other hand Arrow Electronics, Inc. (NYSE:ARW) is the least popular one with only 18 bullish hedge fund positions. Spirit AeroSystems Holdings, Inc. (NYSE:SPR) 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 CF might be a better candidate to consider a long position.

Disclosure: none.

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