Seeing as ArcelorMittal SA (ADR) (NYSE:MT) has experienced bearish sentiment from the smart money, logic holds that there is a sect of fund managers that elected to cut their positions entirely last quarter. Interestingly, Dmitry Balyasny’s Balyasny Asset Management said goodbye to the biggest investment of the 700 funds watched by Insider Monkey, totaling about $27.8 million in stock, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital was right behind this move, as the fund dropped about $13.3 million worth. These transactions are interesting, as total hedge fund interest fell by 4 funds last quarter.
Let’s also examine hedge fund activity in other stocks similar to ArcelorMittal SA (ADR) (NYSE:MT). We will take a look at Westinghouse Air Brake Technologies Corp (NYSE:WAB), Huntington Bancshares Incorporated (NASDAQ:HBAN), Newmont Mining Corp (NYSE:NEM), and Vantiv Inc (NYSE:VNTV). This group of stocks’ market values are closest to MT’s market value.
|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 27.75 hedge funds with bullish positions and the average amount invested in these stocks was $355 million. That figure was $232 million in MT’s case. Newmont Mining Corp (NYSE:NEM) is the most popular stock in this table. On the other hand Huntington Bancshares Incorporated (NASDAQ:HBAN) is the least popular one with only 20 bullish hedge fund positions. Compared to these stocks ArcelorMittal SA (ADR) (NYSE:MT) is even less popular than HBAN. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.