Is GCP Applied Technologies Inc (GCP) Going to Burn These Hedge Funds?

Page 2 of 2

Seeing as GCP Applied Technologies Inc (NYSE:GCP) has experienced bearish sentiment from hedge fund managers, logic holds that there is a sect of hedgies that slashed their positions entirely by the end of the third quarter. At the top of the heap, Jean-Marie Eveillard’s First Eagle Investment Management said goodbye to the largest position of the 700 funds watched by Insider Monkey, totaling an estimated $59.2 million in stock, and Vince Maddi and Shawn Brennan’s SIR Capital Management was right behind this move, as the fund said goodbye to about $2.9 million worth of shares.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as GCP Applied Technologies Inc (NYSE:GCP) but similarly valued. We will take a look at Covanta Holding Corporation (NYSE:CVA), EXACT Sciences Corporation (NASDAQ:EXAS), Universal Forest Products, Inc. (NASDAQ:UFPI), and WPP PLC (ADR) (NASDAQ:WPPGY). All of these stocks’ market caps are closest to GCP’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CVA 9 202436 -4
EXAS 31 251102 15
UFPI 14 83423 -1
WPPGY 10 119015 1

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 $164 million. That figure was $673 million in GCP’s case. EXACT Sciences Corporation (NASDAQ:EXAS) is the most popular stock in this table. On the other hand Covanta Holding Corporation (NYSE:CVA) is the least popular one with only 9 bullish hedge fund positions. GCP Applied Technologies Inc (NYSE:GCP) 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 EXAS might be a better candidate to consider taking a long position in.

Disclosure: none.

Page 2 of 2