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Sparkle Coming Off Signet Jewelers Ltd. (SIG) Following Earnings, Guidance Woes

Judging by the fact that Signet Jewelers Ltd. (NYSE:SIG) has faced bearish sentiment from the entirety of the hedge funds we track, it’s safe to say that there is a sect of fund managers that slashed their positions entirely in the third quarter. Intriguingly, Eric W. Mandelblatt’s Soroban Capital Partners dropped the largest investment of the 700 funds watched by Insider Monkey, comprising close to $146.4 million in stock, and Zach Schreiber of Point State Capital was right behind this move, as the fund dumped about $30.7 million worth of shares. These transactions are important to note, as aggregate hedge fund interest fell by 2 funds in the third quarter.

Let’s also examine hedge fund activity in other stocks similar to Signet Jewelers Ltd. (NYSE:SIG). These stocks are Continental Resources, Inc. (NYSE:CLR), Rockwell Collins, Inc. (NYSE:COL), D.R. Horton, Inc. (NYSE:DHI), and SL Green Realty Corp (NYSE:SLG). All of these stocks’ market caps resemble Signet Jewelers Ltd. (NYSE:SIG)’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CLR 34 448310 -8
COL 17 190702 -3
DHI 40 1299030 -2
SLG 12 99631 -8

As you can see these stocks had an average of 25.75 hedge funds with bullish positions and the average amount invested in these stocks was $509 million.That figure was $3.15 billion in Signet Jewelers Ltd. (NYSE:SIG)’s case. D.R. Horton, Inc. (NYSE:DHI) is the most popular stock in this table. On the other hand SL Green Realty Corp (NYSE:SLG) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Signet Jewelers Ltd. (NYSE:SIG) is still far more popular among hedge funds, despite a dip in sentiment. 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 on today’s dip.

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