Hedge Funds Aren’t Crazy About Ingram Micro Inc. (IM) Anymore

Insider Monkey finished processing more than 700 13F filings made by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of September 30. What do these smart investors think about Ingram Micro Inc. (NYSE:IM)?

Is Ingram Micro Inc. (NYSE:IM) a buy here? Prominent investors are in a bearish mood. The number of long hedge fund positions were trimmed by 5 lately. IM was in 31 hedge funds’ portfolios at the end of September. There were 36 hedge funds in our database with IM positions at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as First American Financial Corp (NYSE:FAF), National Fuel Gas Co. (NYSE:NFG), and Western Refining, Inc. (NYSE:WNR) to gather more data points.

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With all of this in mind, let’s take a peek at the key action encompassing Ingram Micro Inc. (NYSE:IM).

How have hedgies been trading Ingram Micro Inc. (NYSE:IM)?

According to Insider Monkey’s hedge fund database, Anthony Bozza’s Lakewood Capital Management has the number one position in Ingram Micro Inc. (NYSE:IM), worth close to $164.8 million, amounting to 6.2% of its total 13F portfolio. On Lakewood Capital Management’s heels is Alexander Roepers of Atlantic Investment Management, with a $113.2 million position; 10.8% of its 13F portfolio is allocated to the stock. Other hedge funds and institutional investors with similar optimism consist of Charles de Vaulx’s International Value Advisers, Joel Greenblatt’s Gotham Asset Management and Cliff Asness’s AQR Capital Management.

Seeing as Ingram Micro Inc. (NYSE:IM) has faced a declination in interest from the entirety of the hedge funds we track, it’s safe to say that there lies a certain “tier” of fund managers that elected to cut their positions entirely last quarter. It’s worth mentioning that Phill Gross and Robert Atchinson’s Adage Capital Management sold off the largest investment of the 700 funds tracked by Insider Monkey, comprising an estimated $23.2 million in stock. Jim Simons’s fund, Renaissance Technologies, also cut its stock, about $7.5 million worth. These moves are important to note, as aggregate hedge fund interest was cut by 5 funds last quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Ingram Micro Inc. (NYSE:IM) but similarly valued. These stocks are First American Financial Corp (NYSE:FAF), National Fuel Gas Co. (NYSE:NFG), Western Refining, Inc. (NYSE:WNR), and Chicago Bridge & Iron Company N.V. (NYSE:CBI). This group of stocks’ market valuations are similar to IM’s market valuation.

As you can see these stocks had an average of 24.75 hedge funds with bullish positions and the average amount invested in these stocks was $487 million. That figure was $715 million in IM’s case. Western Refining, Inc. (NYSE:WNR) is the most popular stock in this table. On the other hand First American Financial Corp (NYSE:FAF) is the least popular one with only 20 bullish hedge fund positions. Compared to these stocks Ingram Micro Inc. (NYSE:IM) 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 more detail despite the number of hedge funds long the stock dropping by 5.