Should You Avoid Constellium NV (CSTM)?

Judging by the fact that Constellium NV (NYSE:CSTM) has experienced bearish sentiment from hedge fund managers, it’s easy to see that there was a specific group of hedgies that slashed their full holdings by the end of the third quarter. At the top of the heap, Kenney Y. Oh’s SeaStone Capital Management sold off the biggest investment of the “upper crust” of funds monitored by Insider Monkey, comprising close to $24 million in stock, and Israel Englander’s Millennium Management was right behind this move, as the fund sold off about $18.3 million worth. These transactions are interesting, as total hedge fund interest was cut by 3 funds by the end of the third quarter.

Let’s check out hedge fund activity in other stocks similar to Constellium NV (NYSE:CSTM). These stocks are Wstrn Ast Clymr Infltn Lkd Opts & Inc Fd (NYSE:WIW), Orthofix International NV (NASDAQ:OFIX), Osiris Therapeutics, Inc. (NASDAQ:OSIR), and Blackstone / GSO Strategic Credit Fund (NYSE:BGB). This group of stocks’ market valuations resemble CSTM’s market valuation.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $88 million. That figure was $189 million in CSTM’s case. Orthofix International NV (NASDAQ:OFIX) is the most popular stock in this table. On the other hand, Wstrn Ast Clymr Infltn Lkd Opts & Inc Fd (NYSE:WIW) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Constellium NV (NYSE:CSTM) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it is possible that this stock could make for a good addition to your portfolios.