Hedge Funds Are Fleeing Nordson Corporation (NDSN): What Did They Find Out?

Since Nordson Corporation (NASDAQ:NDSN) has weathered falling interest from the aggregate hedge fund industry, logic holds that there were a few funds that slashed their positions entirely in the third quarter. At the top of the heap, Ernest Chow and Jonathan Howe’s Sensato Capital Management cut the biggest position of the 700 funds followed by Insider Monkey, comprising about $10.1 million in stock, and George Hall’s Clinton Group was right behind this move, as the fund dropped about $1.6 million worth of shares.

Let’s check out hedge fund activity in other stocks similar to Nordson Corporation (NASDAQ:NDSN). We will take a look at Live Nation Entertainment, Inc. (NYSE:LYV), Banco Bradesco SA (ADR) (NYSE:BBD), Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), and Envision Healthcare Holdings Inc (NYSE:EVHC). This group of stocks’ market valuations match NDSN’s market valuation.

As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $483 million. That figure was $82 million in NDSN’s case. Envision Healthcare Holdings Inc (NYSE:EVHC) is the most popular stock in this table. On the other hand Banco Bradesco SA (ADR) (NYSE:BBD) is the least popular one with only 13 bullish hedge fund positions. Nordson Corporation (NASDAQ:NDSN) 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 EVHC might be a better candidate to consider taking a long position in.

Disclosure: None