Judging by the fact that The Bank of New York Mellon Corporation (NYSE:BK) has experienced bearish sentiment from the smart money, logic holds that there lies a certain “tier” of money managers who were dropping their positions entirely heading into Q4. It’s worth mentioning that Stephen J. Errico’s Locust Wood Capital Advisers said goodbye to the largest stake of the “upper crust” of funds tracked by Insider Monkey, totaling about $30.7 million in stock. Anand Parekh’s fund, Alyeska Investment Group, also dumped its stock, about $30.3 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 13 funds heading into Q4.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as The Bank of New York Mellon Corporation (NYSE:BK) but similarly valued. We will take a look at McKesson Corporation (NYSE:MCK), Carnival plc (ADR) (NYSE:CUK), Dominion Resources, Inc. (NYSE:D), and Phillips 66 (NYSE:PSX). This group of stocks’ market caps resemble BK’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 33.25 hedge funds with bullish positions and the average amount invested in these stocks was $2.62 billion. That figure was $5.80 billion in BK’s case. McKesson Corporation (NYSE:MCK) is the most popular stock in this table. On the other hand Carnival plc (ADR) (NYSE:CUK) is the least popular one with only 8 bullish hedge fund positions. The Bank of New York Mellon Corporation (NYSE:BK) 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 MCK might be a better candidate to consider a long position in.