Has Hedge Fund Ownership in Welltower Inc. (HCN) Finally Bottomed Out?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that cut their entire stakes in the stock during the third quarter. Interestingly, Benjamin A. Smith’s Laurion Capital Management cut the biggest stake of all the investors monitored by Insider Monkey, worth about $8.6 million in call options. Ken Griffin’s fund, Citadel Investment Group, also sold off its call options, about $7.8 million worth.

Let’s check out hedge fund activity in other stocks similar to Welltower Inc. (NYSE:HCN). These stocks are Anadarko Petroleum Corporation (NYSE:APC), Sherwin-Williams Company (NYSE:SHW), LIBERTY GLOBAL PLC (NASDAQ:LBTYK), and Manulife Financial Corporation (USA) (NYSE:MFC). This group of stocks’ market valuations match HCN’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
APC 65 3899227 17
SHW 50 2237039 5
LBTYK 56 5713173 -4
MFC 13 197047 -3

As you can see these stocks had an average of 46 hedge funds with bullish positions and the average amount invested in these stocks was $3.01 billion. That figure was $710 million in HCN’s case. Anadarko Petroleum Corporation (NYSE:APC) is the most popular stock in this table. On the other hand Manulife Financial Corporation (USA) (NYSE:MFC) is the least popular one with only 13 bullish hedge fund positions. Welltower Inc. (NYSE:HCN) 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 APC might be a better candidate to consider taking a long position in.

Disclosure: None