What Do Hedge Funds Think of Methode Electronics Inc. (MEI)?

Since Methode Electronics Inc. (NYSE:MEI) has faced declining sentiment from the smart money, it’s easy to see that there lies a certain “tier” of fund managers that slashed their full holdings in the third quarter. At the top of the heap, Neil Chriss’ Hutchin Hill Capital sold off the biggest stake of the 700 funds followed by Insider Monkey, totaling about $2.4 million in stock. Michael Platt and William Reeves’s fund, BlueCrest Capital Mgmt, also cut its stock, about $1.6 million worth. These transactions are intriguing to say the least, as total hedge fund interest fell by 1 funds in the third quarter.

Let’s also examine hedge fund activity in other stocks similar to Methode Electronics Inc. (NYSE:MEI). These stocks are Mueller Water Products, Inc. (NYSE:MWA), Essendant Inc (NASDAQ:ESND), Chemical Financial Corporation (NASDAQ:CHFC), and Power Integrations Inc (NASDAQ:POWI). All of these stocks’ market caps are closest to MEI’s market cap.

As you can see these stocks had an average of 16.5 hedge funds with bullish positions and the average amount invested in these stocks was $67 million. That figure was $137 million in MEI’s case. Mueller Water Products, Inc. (NYSE:MWA) is the most popular stock in this table. On the other hand Chemical Financial Corporation (NASDAQ:CHFC) is the least popular one with only 13 bullish hedge fund positions. Along with MWA, Methode Electronics Inc. (NYSE:MEI) is the most popular stock in this group and that makes it worth a closer look.