Is Parker-Hannifin Corporation (PH) Going to Burn These Hedge Funds?

As industrywide interest jumped, specific money managers were leading the bulls’ herd. Millennium Management, managed by Israel Englander, assembled the most valuable position in Parker-Hannifin Corporation (NYSE:PH). Millennium Management had $8.6 million invested in the company at the end of the quarter. Steve Cohen’s Point72 Asset Management also initiated a $4.9 million position during the quarter. The other funds with brand new PH positions are Dmitry Balyasny’s Balyasny Asset Management, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, and John Overdeck and David Siegel’s Two Sigma Advisors.

Let’s now take a look at hedge fund activity in other stocks similar to Parker-Hannifin Corporation (NYSE:PH). We will take a look at Mohawk Industries, Inc. (NYSE:MHK), Invesco Ltd. (NYSE:IVZ), SBA Communications Corporation (NASDAQ:SBAC), and Vale SA (ADR) (NYSE:VALE). This group of stocks’ market valuations matches Parker-Hannifin Corporation (NYSE:PH)’s market valuation.

As you can see, these stocks had an average of 44 hedge funds with bullish positions and the average amount invested in these stocks was $1.40 billion. That figure was $848 million in Parker-Hannifin Corporation (NYSE:PH)’s case. Mohawk Industries, Inc. (NYSE:MHK) is the most popular stock in this table. On the other hand, Vale SA (ADR) (NYSE:VALE) is the least popular one with only 24 bullish hedge fund positions. Parker-Hannifin Corporation (NYSE:PH) 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, Mohawk Industries, Inc. (NYSE:MHK) might be a better candidate to consider a long position.