Is HD Supply Holdings Inc (HDS) Worthy Of Your Portfolio?

Seeing as HD Supply Holdings Inc (NASDAQ:HDS) has experienced declining sentiment from the smart money, we can see that there exists a select few funds that decided to sell off their positions entirely in the third quarter. At the top of the heap, Brian Taylor’s Pine River Capital Management said goodbye to the biggest position of all the hedgies watched by Insider Monkey, valued at an estimated $34.8 million in stock, and First Eagle Investment Management was right behind this move, as the fund dumped about $28.1 million worth of shares. These bearish behaviors are important to note, as aggregate hedge fund interest fell by 7 funds in the third quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as HD Supply Holdings Inc (NASDAQ:HDS) but similarly valued. These stocks are KT Corporation (ADR) (NYSE:KT), Raymond James Financial, Inc. (NYSE:RJF), Kohl’s Corporation (NYSE:KSS), and Oaktree Capital Group LLC (NYSE:OAK). This group of stocks’ market caps match HDS’s market cap.

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $241 million, which is significantly lower in comparison with the $1866 million figure in HDS’s case. Kohl’s Corporation (NYSE:KSS) is the most popular stock in this table. On the other hand KT Corporation (ADR) (NYSE:KT) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks HD Supply Holdings Inc (NASDAQ:HDS) 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.