Hedge Funds Are Selling ON Semiconductor Corp (ON)

Seeing as ON Semiconductor Corp (NASDAQ:ON) has experienced a bearish sentiment from the smart money, logic holds that there were a few hedgies who were dropping their positions entirely in the third quarter. Intriguingly, Glenn Russell Dubin’s Highbridge Capital Management sold off the biggest investment of the “upper crust” of funds monitored by Insider Monkey, totaling close to $37.1 million in stock. Charles Clough’s fund, Clough Capital Partners, also cut its stock, about $19.6 million worth of shares. These transactions are interesting, as aggregate hedge fund interest fell by 11 funds in the third quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as ON Semiconductor Corp (NASDAQ:ON) but similarly valued. These stocks are USG Corporation (NYSE:USG), Toro Company (NYSE:TTC), Hospitality Properties Trust (NYSE:HPT), and Graco Inc. (NYSE:GGG). This group of stocks’ market values is closest to ON Semiconductor Corp (NASDAQ:ON)’s market value.

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 $409 million. That figure was $564 million in ON Semiconductor Corp (NASDAQ:ON)’s case. USG Corporation (NYSE:USG) is the most popular stock in this table. On the other hand, Graco Inc. (NYSE:GGG) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks, ON Semiconductor Corp (NASDAQ:ON) 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.