Vulcan Materials Company (VMC): Are Hedge Funds Right About This Stock?

Since Vulcan Materials Company (NYSE:VMC) has faced declining sentiment from hedge fund managers, logic holds that there exists a select few funds that elected to cut their positions entirely between July and September. Intriguingly, Patrick Degorce’s Theleme Partners sold off the largest investment of the 700 funds tracked by Insider Monkey, totaling close to $164.5 million in stock, and First Eagle Investment Management was right behind this move, as the fund cut about $129.4 million worth.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Vulcan Materials Company (NYSE:VMC) but similarly valued. These stocks are Digital Realty Trust, Inc. (NYSE:DLR), DaVita HealthCare Partners Inc (NYSE:DVA), Goldcorp Inc. (USA) (NYSE:GG), and CenturyLink, Inc. (NYSE:CTL). This group of stocks’ market values resemble VMC’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
DLR 16 175456 -2
DVA 36 3422125 -1
GG 24 311237 -4
CTL 29 395238 1

As you can see these stocks had an average of 26 funds with long positions and the average amount invested in these stocks was $1.08 billion. That figure was $1.41 billion in VMC’s case. DaVita HealthCare Partners Inc (NYSE:DVA) is the most popular stock in this table, while Digital Realty Trust, Inc. (NYSE:DLR) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks Vulcan Materials Company (NYSE:VMC) 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.