Is Honeywell International Inc. (HON) A Good Stock To Buy?

How do we determine whether Honeywell International Inc. (NYSE:HON) makes for a good investment at the moment? We analyze the sentiment of a select group of the very best investors in the world, who spend immense amounts of time and resources studying companies. They may not always be right (no one is), but data shows that their consensus long positions have historically outperformed the market when we adjust for known risk factors.

Honeywell International Inc. (NYSE:HON) investors should pay attention to a decrease in activity from the world’s largest hedge funds lately as you will see later. At the end of this article we will also compare HON to other stocks including American International Group Inc (NYSE:AIG), Toronto-Dominion Bank (USA) (NYSE:TD), and China Petroleum & Chemical Corp (ADR) (NYSE:SNP) to get a better sense of its popularity.

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In the eyes of most traders, hedge funds are assumed to be slow, old financial tools of years past. While there are greater than 8000 funds trading at the moment, our experts look at the moguls of this club, approximately 700 funds. These hedge fund managers oversee most of all hedge funds’ total asset base, and by keeping track of their finest picks, Insider Monkey has figured out a few investment strategies that have historically beaten the market. Insider Monkey’s small-cap hedge fund strategy defeated the S&P 500 index by 12 percentage points a year for a decade in their back tests.

Keeping this in mind, let’s take a glance at the key action encompassing Honeywell International Inc. (NYSE:HON).

How are hedge funds trading Honeywell International Inc. (NYSE:HON)?

At the Q3’s end, a total of 46 of the hedge funds tracked by Insider Monkey were long this stock, a change of -6% from the second quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were upping their holdings significantly (or already accumulated large positions).

According to Insider Monkey’s hedge fund database, Mario Gabelli’s GAMCO Investors has the most valuable position in Honeywell International Inc. (NYSE:HON), worth close to $197.1 million, accounting for 1.3% of its total 13F portfolio. On GAMCO Investors’s heels is Anchor Bolt Capital, led by Robert Polak, holding an $119.9 million position; the fund has 4% of its 13F portfolio invested in the stock. Remaining hedge funds and institutional investors with similar optimism consist of Phill Gross and Robert Atchinson’s Adage Capital Management, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Anand Parekh’s Alyeska Investment Group.