What Does Hedge Fund Sentiment Say About Dollar Tree, Inc. (DLTR)?

Since Dollar Tree, Inc. (NASDAQ:DLTR) has faced falling interest from hedge fund managers, logic holds that there exists a select few money managers that slashed their full holdings in the third quarter. Intriguingly, James Crichton’s Hitchwood Capital Management dumped the biggest investment of the 700 funds monitored by Insider Monkey, totaling close to $94.8 million in stock. Neil Chriss’s fund, Hutchin Hill Capital, also cut its holding, about $43.4 million worth. These transactions are interesting, as total hedge fund interest was reduced by 8 funds in the third quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Dollar Tree, Inc. (NASDAQ:DLTR) but similarly valued. We will take a look at DaVita HealthCare Partners Inc (NYSE:DVA), Equinix Inc (NASDAQ:EQIX), Level 3 Communications, Inc. (NYSE:LVLT), and Telefonica Brasil SA (ADR) (NYSE:VIV). This group of stocks’ market values resemble DLTR’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
DVA 39 4826358 -5
EQIX 42 3237834 1
LVLT 36 3181408 -7
VIV 13 125302 -5

As you can see these stocks had an average of 33 hedge funds with bullish positions and the average amount invested in these stocks was $2.84 billion. Equinix Inc (NASDAQ:EQIX) is the most popular stock in this table with 42 funds reporting long positions, while Telefonica Brasil SA (ADR) (NYSE:VIV) is the least popular one. On the other hand, On the other hand, hedge funds held in aggregate $3.27 billion of DLTR’s stock and it is also 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.