Is Sensata Technologies Holding N.V. (ST) A Good Stock To Buy?

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Since Sensata Technologies Holding N.V. (NYSE:ST) has witnessed a declination in interest from the aggregate hedge fund industry, we can see that there was a specific group of money managers that decided to sell off their full holdings last quarter. Interestingly, Dan Loeb’s Third Point said goodbye to the largest investment of all the hedgies watched by Insider Monkey, totaling close to $76.1 million in stock. John Armitage’s fund, Egerton Capital Limited, also cut its holding, about $48.5 million worth. These moves are important to note, as aggregate hedge fund interest fell by 5 funds last quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Sensata Technologies Holding N.V. (NYSE:ST) but similarly valued. These stocks are Fibria Celulose SA (ADR) (NYSE:FBR), Mallinckrodt PLC (NYSE:MNK), Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL), and Alleghany Corporation (NYSE:Y). All of these stocks’ market caps are closest to ST’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FBR 8 49866 -2
MNK 40 1554176 -3
MPEL 22 320399 -1
Y 30 865434 -3

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $697 million. That figure was $1.71 billion in ST’s case. Mallinckrodt PLC (NYSE:MNK) is the most popular stock in this table. On the other hand Fibria Celulose SA (ADR) (NYSE:FBR) is the least popular one with only 8 bullish hedge fund positions. Sensata Technologies Holding N.V. (NYSE:ST) 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 MNK might be a better candidate to consider a long position.

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