Is Tyson Foods, Inc. (TSN) Going to Burn These Hedge Funds?

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Seeing as Tyson Foods, Inc. (NYSE:TSN) has faced declining sentiment from the entirety of the hedge funds we track, it’s easy to see that there were a few hedge funds that decided to sell off their entire stakes heading into Q4. It’s worth mentioning that Jean-Marie Eveillard’s First Eagle Investment Management cut the largest investment of the 700 funds followed by Insider Monkey, valued at about $148.3 million in call options, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund sold off about $14 million worth of options. These transactions are important to note, as aggregate hedge fund interest fell by 5 funds heading into Q4.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Tyson Foods, Inc. (NYSE:TSN) but similarly valued. We will take a look at AvalonBay Communities Inc (NYSE:AVB), Pioneer Natural Resources (NYSE:PXD), CBS Corporation (NYSE:CBS), and Ventas, Inc. (NYSE:VTR). This group of stocks’ market caps are closest to TSN’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AVB 16 511631 -3
PXD 72 4119576 -2
CBS 56 2867072 -3
VTR 18 441525 3

As you can see these stocks had an average of 41 hedge funds with bullish positions and the average amount invested in these stocks was $1.98 billion. That figure was $1.63 billion in TSN’s case. Pioneer Natural Resources (NYSE:PXD) is the most popular stock in this table. On the other hand AvalonBay Communities Inc (NYSE:AVB) is the least popular one with only 16 bullish hedge fund positions. Tyson Foods, Inc. (NYSE:TSN) 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 PXD might be a better candidate to consider a long position.

Disclosure: none.

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