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Hedge Funds Continue to Ditch Mylan NV (MYL)

Seeing as Mylan NV (NASDAQ:MYL) has witnessed bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there lies a certain “tier” of funds that elected to cut their full holdings in the third quarter. It’s worth mentioning that Carl Tiedemann and Michael Tiedemann’s TIG Advisors sold off the largest investment of the “upper crust” of funds watched by Insider Monkey, worth about $19.8 million in stock, and Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management was right behind this move, as the fund dropped about $17.6 million worth of shares. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 5 funds in the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Mylan NV (NASDAQ:MYL) but similarly valued. We will take a look at Aviva Plc (ADR) (NYSE:AV), HP Inc. (NYSE:HPQ), Paychex, Inc. (NASDAQ:PAYX), and State Street Corporation (NYSE:STT). This group of stocks’ market caps resemble MYL’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AV 5 2883 1
HPQ 39 1293117 -1
PAYX 24 612841 1
STT 31 633743 -2

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 $636 million. That figure was $1.82 billion in MYL’s case. HP Inc. (NYSE:HPQ) is the most popular stock in this table. On the other hand Aviva Plc (ADR) (NYSE:AV) is the least popular one with only 5 bullish hedge fund positions. Mylan NV (NASDAQ:MYL) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on, not running for their lives from. In this regard HPQ might be a better candidate to consider for a long position.

Disclosure: None

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