Is Polaris Industries Inc. (PII) Worthy of Your Portfolio?

Seeing as Polaris Industries Inc. (NYSE:PII) has witnessed falling interest from the entirety of the hedge funds we track, we can see that there exists a select few money managers that decided to sell off their positions entirely by the end of the third quarter. At the top of the heap, Robert Joseph Caruso’s Select Equity Group sold off the largest investment of all the hedgies monitored by Insider Monkey, totaling about $65.5 million in stock.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Polaris Industries Inc. (NYSE:PII) but similarly valued. We will take a look at Dun & Bradstreet Corp (NYSE:DNB), athenahealth, Inc (NASDAQ:ATHN), Core Laboratories N.V. (NYSE:CLB), and Donaldson Company, Inc. (NYSE:DCI). This group of stocks’ market caps resemble PII’s market cap.

As you can see these stocks had an average of 18 funds with bullish positions and the average amount invested in these stocks was $167 million. That figure was $75 million in PII’s case. Core Laboratories N.V. (NYSE:CLB) is the most popular stock in this table. On the other hand Donaldson Company, Inc. (NYSE:DCI) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Polaris Industries Inc. (NYSE:PII) has the same level of popularity as DCI. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: none