Since Zoetis Inc (NYSE:ZTS) has experienced bearish sentiment from the smart money, logic holds that there is a sect of funds who sold off their full holdings by the end of the third quarter. Intriguingly, Jean-Marie Eveillard’s First Eagle Investment Management dropped the biggest position of all the hedgies watched by Insider Monkey, worth close to $98.4 million in stock. Dmitry Balyasny’s fund, Balyasny Asset Management, also said goodbye to its stock, about $18.5 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest was cut by 2 funds by the end of the third quarter.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Zoetis Inc (NYSE:ZTS) but similarly valued. We will take a look at Luxottica Group SpA (ADR) (NYSE:LUX), Charter Communications, Inc. (NASDAQ:CHTR), AutoZone, Inc. (NYSE:AZO), and Telefonica Brasil SA (ADR) (NYSE:VIV). All of these stocks’ market caps match ZTS’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 41.25 hedge funds with bullish positions and the average amount invested in these stocks was $4.99 billion. That figure was $2.24 billion in ZTS’s case. Charter Communications, Inc. (NASDAQ:CHTR) is the most popular stock in this table. On the other hand Luxottica Group SpA (ADR) (NYSE:LUX) is the least popular one with only 3 bullish hedge fund positions. Zoetis Inc (NYSE:ZTS) 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 CHTR might be a better candidate to consider a long position.