Is The Time Right To Buy FNF Group of Fidelity National Financial, Inc. (FNF)?

Seeing as FNF Group of Fidelity National Financial, Inc. (NYSE:FNF) has faced a decline in interest from the smart money, it’s safe to say that there lies a certain “tier” of hedge funds who were dropping their positions entirely last quarter. At the top of the heap, Mark Kingdon’s Kingdon Capital said goodbye to the largest stake of all the hedgies tracked by Insider Monkey, valued at about $20.6 million in stock. Andrew Feldstein and Stephen Siderow’s fund, Blue Mountain Capital, also sold off its stock, about $8.8 million worth of shares. These bearish behaviors are important to note, as aggregate hedge fund interest was cut by 2 funds last quarter.

Let’s now review hedge fund activity in other stocks similar to FNF Group of Fidelity National Financial, Inc. (NYSE:FNF). We will take a look at CMS Energy Corporation (NYSE:CMS), Fastenal Company (NASDAQ:FAST), MGM Resorts International (NYSE:MGM), and Marathon Oil Corporation (NYSE:MRO). This group of stocks’ market values are closest to FNF’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CMS 19 395362 1
FAST 23 624673 -1
MGM 53 2300675 -6
MRO 22 213779 -4

As you can see these stocks had an average of 29.25 hedge funds with bullish positions and the average amount invested in these stocks was $884 million. That figure was $1.13 billion in FNF’s case. MGM Resorts International (NYSE:MGM) is the most popular stock in this table. On the other hand CMS Energy Corporation (NYSE:CMS) is the least popular one with only 19 bullish hedge fund positions. FNF Group of Fidelity National Financial, Inc. (NYSE:FNF) 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 MGM might be a better candidate to consider a long position.