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Should You Avoid AmerisourceBergen Corp. (ABC)?

Since AmerisourceBergen Corp. (NYSE:ABC) has witnessed a falling interest from hedge fund managers, it’s safe to say that there is a sect of money managers that elected to cut their entire stakes heading into Q4. Intriguingly, Philip Hempleman’s Ardsley Partners cut the biggest stake of the 700 funds watched by Insider Monkey, comprising close to $12 million in stock. Peter Muller’s fund, PDT Partners, also sold off its stock, about $5.9 million worth of shares. These transactions are important to note, as aggregate hedge fund interest was cut by 1 fund heading into Q4.

Let’s now take a look at hedge fund activity in other stocks similar to AmerisourceBergen Corp. (NYSE:ABC). These stocks are Nidec Corporation (ADR) (NYSE:NJ), Prologis Inc (NYSE:PLD), ARM Holdings plc (ADR) (NASDAQ:ARMH), and Fiserv, Inc. (NASDAQ:FISV). This group of stocks’ market caps matches AmerisourceBergen Corp. (NYSE:ABC)’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NJ 4 5167 0
PLD 17 403248 -11
ARMH 17 243693 -4
FISV 21 360513 -1

As you can see, these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $253 million. That figure was $1.03 billion in AmerisourceBergen Corp. (NYSE:ABC)’s case. Fiserv, Inc. (NASDAQ:FISV) is the most popular stock in this table. On the other hand, Nidec Corporation (ADR) (NYSE:NJ) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks, AmerisourceBergen Corp. (NYSE:ABC) 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.

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