Is Visteon Corp (VC) A Good Stock To Buy?

Because Visteon Corp (NYSE:VC) has witnessed falling interest from the smart money, it’s easy to see that there lies a certain “tier” of money managers who were dropping their positions entirely in the third quarter. At the top of the heap, First Eagle Investment Management dumped the biggest position of all the hedgies followed by Insider Monkey, totaling close to $58.6 million in stock. Ernest Chow and Jonathan Howe’s fund, Sensato Capital Management, also dumped its stock, about $16.7 million worth of VC shares. These moves are intriguing to say the least, as total hedge fund interest fell by 2 funds in the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Visteon Corp (NYSE:VC) but similarly valued. These stocks are Laredo Petroleum Holdings Inc (NYSE:LPI), InterOil Corporation (USA) (NYSE:IOC), Eastgroup Properties Inc (NYSE:EGP), and Radian Group Inc (NYSE:RDN). This group of stocks’ market caps match VC’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
LPI 22 461028 1
IOC 20 274150 -2
EGP 8 12198 2
RDN 28 378635 -3

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $282 million. That figure was $588 million in VC’s case. Radian Group Inc (NYSE:RDN) is the most popular stock in this table. On the other hand Eastgroup Properties Inc (NYSE:EGP) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Visteon Corp (NYSE:VC) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: none.