Freeport-McMoRan (FCX) Terminates Drillship Contract With Rowan Companies (RDC)

Due to the fact that Freeport-McMoRan (NYSE:FCX) has faced declining sentiment from hedge fund managers, it’s easy to see that there exists a select few fund managers that elected to cut their entire stakes heading into Q2. At the top of the heap, David Tepper’s Appaloosa Management LP dumped the biggest investment of the “upper crust” of funds watched by Insider Monkey, valued at about $24.1 million in stock. John Burbank’s fund, Passport Capital, also sold off its stock, about $18.9 million worth. These transactions are interesting, as total hedge fund interest dropped by 3 funds heading into Q2.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Freeport-McMoRan (NYSE:FCX) but similarly valued. We will take a look at Liberty Media Corp (NASDAQ:LMCA), Cameron International Corporation (NYSE:CAM), CA, Inc. (NASDAQ:CA), and Huaneng Power International Inc (ADR) (NYSE:HNP). This group of stocks’ market valuations are similar to FCX’s market valuation.

As you can see these stocks had an average of 27.75 hedge funds with bullish positions and the average amount invested in these stocks was $1.08 billion. That figure was $1.59 billion in FCX’s case. Cameron International Corporation (NYSE:CAM) is the most popular stock in this table. On the other hand Huaneng Power International Inc (ADR) (NYSE:HNP) is the least popular one with only 5 bullish hedge fund positions. Freeport-McMoRan (NYSE:FCX) 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 CAM might be a better candidate to consider a long position in.

Disclosure: None