Because PPG Industries, Inc. (NYSE:PPG) has experienced bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there lies a certain “tier” of funds who were dropping their positions entirely heading into Q4. It’s worth mentioning that David Tepper’s Appaloosa Management LP cut the largest stake of the 700 funds tracked by Insider Monkey, valued at close to $22.6 million in stock, and Robert Polak’s Anchor Bolt Capital was right behind this move, as the fund dropped about $18 million worth. These transactions are important to note, as total hedge fund interest was cut by 3 funds heading into Q4.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as PPG Industries, Inc. (NYSE:PPG) but similarly valued. We will take a look at Liberty Global Inc. (NASDAQ:LBTYA), Royal Bank of Scotland Group plc (ADR) (NYSE:RBS), Eaton Corporation, PLC Ordinary Shares (NYSE:ETN), and Health Care REIT, Inc. (NYSE:HCN). This group of stocks’ market caps are similar to PPG’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 30 hedge funds with bullish positions and the average amount invested in these stocks was $872 million. That figure was $726 million in PPG’s case. Liberty Global Inc. (NASDAQ:LBTYA) is the most popular stock in this table. On the other hand Royal Bank of Scotland Group plc (ADR) (NYSE:RBS) is the least popular one with only 10 bullish hedge fund positions. PPG Industries, Inc. (NYSE:PPG) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard LBTYA might be a better candidate to consider a long position.