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Is Nike Inc (NKE) Worthy of Your Portfolio?

Since Nike Inc (NYSE:NKE) has faced bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there was a specific group of money managers that elected to cut their positions entirely during the third quarter. Richard Chilton’s Chilton Investment Company sold off the biggest investment of the “upper crust” of funds monitored by Insider Monkey, comprising close to $85.2 million in stock, and Doug Silverman and Alexander Klabin’s Senator Investment Group was right behind this move, as the fund sold off about $73.1 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks similar to Nike Inc (NYSE:NKE). We will take a look at SAP AG (ADR) (NYSE:SAP), Allergan, Inc. (NYSE:AGN), Walgreens Boots Alliance Inc (NASDAQ:WBA), and Honeywell International Inc. (NYSE:HON). This group of stocks’ market valuations are similar to NKE’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SAP 7 844681 -2
AGN 115 10590015 -16
WBA 60 3125492 -7
HON 48 1612992 0

As you can see these stocks had an average of 58 investors from our database holding shares and the average amount invested in these stocks was $4.04 billion. That figure was $3.72 billion in Nike Inc (NYSE:NKE)’s case. Allergan, Inc. (NYSE:AGN) is the most popular stock in this table with 115 funds reporting long positions. On the other hand SAP AG (ADR) (NYSE:SAP) is the least popular one with only seven bullish hedge fund positions. Nike Inc (NYSE:NKE) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, Allergan, Inc. (NYSE:AGN) might be a better candidate to consider a long position.

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