Is Allegheny Technologies Incorporated (ATI) Going to Burn These Hedge Funds?

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Due to the fact that Allegheny Technologies Incorporated (NYSE:ATI) has faced declining sentiment from the aggregate hedge fund industry, it’s easy to see that there exists a select few fund managers that decided to sell off their entire stakes heading into Q4. At the top of the heap, Doug Gordon, Jon Hilsabeck and Don Jabro’s Shellback Capital dumped the largest position of all the hedgies watched by Insider Monkey, valued at close to $10.6 million in stock, and Anand Parekh’s Alyeska Investment Group was right behind this move, as the fund said goodbye to about $6 million worth. These transactions are important to note, as aggregate hedge fund interest fell by 2 funds heading into Q4.

Let’s now review hedge fund activity in other stocks similar to Allegheny Technologies Incorporated (NYSE:ATI). These stocks are Intersil Corp (NASDAQ:ISIL), Chesapeake Lodging Trust (NYSE:CHSP), Monogram Residential Trust Inc (NYSE:MORE), and CommVault Systems, Inc. (NASDAQ:CVLT). This group of stocks’ market caps are closest to ATI’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ISIL 14 41692 2
CHSP 12 26853 -1
MORE 7 15067 -2
CVLT 22 345515 0

As you can see these stocks had an average of 13.75 hedge funds with bullish positions and the average amount invested in these stocks was $107 million. That figure was $191 million in ATI’s case. CommVault Systems, Inc. (NASDAQ:CVLT) is the most popular stock in this table. On the other hand Monogram Residential Trust Inc (NYSE:MORE) is the least popular one with only 7 bullish hedge fund positions. Allegheny Technologies Incorporated (NYSE:ATI) 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. In this regard CVLT might be a better candidate to consider a long position.

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