Hedge Funds Are Dumping Activision Blizzard, Inc. (ATVI)

Judging by the fact that Activision Blizzard, Inc. (NASDAQ:ATVI) has witnessed declining sentiment from hedge fund managers, logic holds that there is a sect of funds that slashed their entire stakes in the third quarter. Intriguingly, Jim Simons’s Renaissance Technologies dropped the biggest investment of the “upper crust” of funds tracked by Insider Monkey, worth an estimated $59.8 million in stock. John Overdeck and David Siegel’s fund, Two Sigma Advisors, also sold off its stock, about $38 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest was cut by 3 funds in the third quarter.

Let’s check out hedge fund activity in other stocks similar to Activision Blizzard, Inc. (NASDAQ:ATVI). These stocks are Fiat Chrysler Automobiles NV (NYSE:FCAU), Chipotle Mexican Grill, Inc. (NYSE:CMG), TransCanada Corporation (USA) (NYSE:TRP), and AutoZone, Inc. (NYSE:AZO). This group of stocks’ market values match ATVI’s market value.

As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $975 million. That figure was $2087 million in ATVI’s case. AutoZone, Inc. (NYSE:AZO) is the most popular stock in this table. On the other hand TransCanada Corporation (USA) (NYSE:TRP) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks Activision Blizzard, Inc. (NASDAQ:ATVI) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.