Seeing as Mueller Industries, Inc. (NYSE:MLI) has witnessed a slighlty declining interest from the smart money, it’s safe to say that there was a specific group of fund managers that elected to cut their full holdings by the end of the third quarter. It’s worth mentioning that Clint Murray’s Lodge Hill Capital dropped the biggest position of the 700 funds watched by Insider Monkey, valued at an estimated $12.7 million in stock, and Paul Reeder and Edward Shapiro of PAR Capital Management was right behind this move, as the fund said goodbye to about $11.1 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s go over hedge fund activity in other stocks similar to Mueller Industries, Inc. (NYSE:MLI). These stocks are DuPont Fabros Technology, Inc. (NYSE:DFT), Planet Fitness Inc (NYSE:PLNT), Healthequity Inc (NASDAQ:HQY), and Mack Cali Realty Corp (NYSE:CLI). This group of stocks’ market values resembles Mueller Industries, Inc. (NYSE:MLI)’s market value.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see, these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $111 million. By comparison, the hedge fund interest towards Mueller Industries is average, but the funds we track amassed some $300 million worth of its stock at the end of September. This could suggest that the stock may be a good bet, but a more detailed analysis is required. However, we think that it is better to invest in stocks that hedge funds are collectively the most bullish on, and CLI, might be also an alternative to consider for a long position.