Hedge Funds Are Selling First Horizon National Corporation (FHN)

Due to the fact that First Horizon National Corporation (NYSE:FHN) has experienced declining sentiment from hedge fund managers, we can see that there lies a certain “tier” of hedgies that elected to cut their positions entirely last quarter. Interestingly, David Dreman’s Dreman Value Management dumped the largest position of the 700 funds followed by Insider Monkey, valued at about $12.5 million in stock, and Neil Chriss’s Hutchin Hill Capital was right behind this move, as the fund dumped about $7.8 million worth of FHN shares. These moves are interesting, as total hedge fund interest fell by 2 funds last quarter.

Let’s go over hedge fund activity in other stocks similar to First Horizon National Corporation (NYSE:FHN). We will take a look at AngloGold Ashanti Limited (ADR) (NYSE:AU), American Capital Ltd. (NASDAQ:ACAS), RLJ Lodging Trust (NYSE:RLJ), and Webster Financial Corporation (NYSE:WBS). All of these stocks’ market caps resemble FHN’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AU 15 495127 -3
ACAS 36 1095174 -2
RLJ 9 116093 -3
WBS 25 453351 2

As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $540 million. That figure was just $166 million in FHN’s case. American Capital Ltd. (NASDAQ:ACAS) is the most popular stock in this table, whereas RLJ Lodging Trust (NYSE:RLJ) is the least popular one with only 9 bullish hedge fund positions. First Horizon National Corporation (NYSE:FHN) 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 ACAS might be a better candidate to consider a long position.