Hedge Funds Are Dumping Yahoo! Inc. (YHOO)

Judging by the fact that Yahoo! Inc. (NASDAQ:YHOO) has experienced falling interest from the aggregate hedge fund industry, we can see that there exists a select few fund managers that slashed their positions entirely by the end of the fourth quarter. At the top of the heap, Masroor Siddiqui and Bruce Emery’s Naya Capital dumped the largest investment of the 700 funds tracked by Insider Monkey, valued at close to $262.8 million in stock. Daniel S. Och’s fund, OZ Management, also said goodbye to its stock, about $252.2 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest was cut by fve funds by the end of the fourth quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Yahoo! Inc. (NASDAQ:YHOO) but similarly valued. These stocks are Luxottica Group SpA (ADR) (NYSE:LUX), Emerson Electric Co. (NYSE:EMR), Sony Corporation (ADR) (NYSE:SNE), and Brookfield Asset Management Inc. (USA) (NYSE:BAM). All of these stocks’ market caps resemble YHOO’s market cap.

As you can see these stocks had an average of 18.25 hedge funds with bullish positions and the average amount invested in these stocks was $565 million. That figure was $5922 million in YHOO’s case. Emerson Electric Co. (NYSE:EMR) is the most popular stock in this table. On the other hand Luxottica Group SpA (ADR) (NYSE:LUX) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Yahoo! Inc. (NASDAQ:YHOO) 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.

Disclosure: None