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Is Aramark (ARMK) Worthy of Your Portfolio?

Seeing as Aramark (NYSE:ARMK) has witnessed bearish sentiment from the aggregate hedge fund industry, it’s easy to see that there were a few money managers that decided to sell off their entire stakes in the third quarter. It’s worth mentioning that Lee Ainslie’s Maverick Capital dropped the biggest investment of all the hedgies followed by Insider Monkey, worth close to $226.7 million in stock. Paul Tudor Jones’ fund, Tudor Investment Corp, also cut its stock worth about $16.8 million.

Let’s go over hedge fund activity in other stocks similar to Aramark (NYSE:ARMK). We will take a look at Turkcell Iletisim Hizmetleri A.S. (ADR) (NYSE:TKC), Gartner Inc (NYSE:IT), Mid America Apartment Communities Inc (NYSE:MAA), and Scripps Networks Interactive, Inc. (NYSE:SNI). This group of stocks’ market values are closest to ARMK’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TKC 5 1684 -1
IT 20 352111 -2
MAA 15 206005 -2
SNI 23 1001763 2

As you can see these stocks had an average of 16 funds with bullish positions at the end of September and the average amount invested in these stocks was $390 million. By comparison, the 26 investors from our database amassed $1.09 billion worth of ARMK’s stock. Among the stocks in the table, Scripps Networks Interactive, Inc. (NYSE:SNI) is the most popular stock, while Turkcell Iletisim Hizmetleri A.S. (ADR) (NYSE:TKC) is the least popular one with only five investors holding shares. Compared to these stocks Aramark (NYSE:ARMK) 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 detail and potentially include it in your portfolio.

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