How Canadian National Railway (USA) (CNI) Stacks Up Against Similarly Valued Stocks

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Seeing as Canadian National Railway (USA) (NYSE:CNI) has faced bearish sentiment from hedge fund managers, we can see that there exists a select few hedgies who sold off their positions entirely last quarter. At the top of the heap, Joel Greenblatt’s Gotham Asset Management dumped the biggest stake of all the hedgies followed by Insider Monkey, totaling close to $17.6 million in stock. Todd J. Kantor’s fund, Encompass Capital Advisors, also dumped its stock, about $5.9 million worth.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Canadian National Railway (USA) (NYSE:CNI) but similarly valued. These stocks are BHP Billiton Limited (ADR) (NYSE:BHP), Honda Motor Co Ltd (ADR) (NYSE:HMC),, Inc. (ADR) (NASDAQ:BIDU), and Monsanto Company (NYSE:MON). This group of stocks’ market caps resemble CNI’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BHP 19 253041 2
HMC 11 150009 3
BIDU 57 4125681 1
MON 77 3675899 -10

As you can see these stocks had an average of 41 hedge funds with bullish positions and the average amount invested in these stocks was $2051 million. That figure was $1448 million in CNI’s case. Monsanto Company (NYSE:MON) is the most popular stock in this table. On the other hand Honda Motor Co Ltd (ADR) (NYSE:HMC) is the least popular one with only 11 bullish hedge fund positions. Canadian National Railway (USA) (NYSE:CNI) 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 MON might be a better candidate to consider taking a long position in.

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