Fresenius Medical Care AG & Co. (ADR) (FMS): Are Hedge Funds Right About This Stock?

Since Fresenius Medical Care AG & Co. (ADR) (NYSE:FMS) has faced falling interest from the entirety of the hedge funds we track, it’s safe to say that there lies a certain “tier” of fund managers who were dropping their positions entirely last quarter. Interestingly, Paul Marshall and Ian Wace’s Marshall Wace LLP said goodbye to the largest position of the 700 funds tracked by Insider Monkey, comprising close to $0.5 million in stock. Matthew Tewksbury’s fund, Stevens Capital Management, also dumped its stock, about $0.5 million worth.

Let’s go over hedge fund activity in other stocks similar to Fresenius Medical Care AG & Co. (ADR) (NYSE:FMS). These stocks are Health Care REIT, Inc. (NYSE:HCN), Illumina, Inc. (NASDAQ:ILMN), O’Reilly Automotive Inc (NASDAQ:ORLY), and HP Inc. (NYSE:HPQ). This group of stocks’ market caps are similar to FMS’s market cap.

As you can see these stocks had an average of 32.25 hedge funds with bullish positions and the average amount invested in these stocks was $1068 million. That figure was $7 million in FMS’s case. O’Reilly Automotive Inc (NASDAQ:ORLY) is the most popular stock in this table. On the other hand Health Care REIT, Inc. (NYSE:HCN) is the least popular one with only 20 bullish hedge fund positions. Compared to these stocks Fresenius Medical Care AG & Co. (ADR) (NYSE:FMS) is even less popular than HCN. 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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