What Hedge Funds Think about Donaldson Company, Inc. (DCI)?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that sold off their entire stakes in the stock during the third quarter. Interestingly, David Blood and Al Gore’s Generation Investment Management sold off the biggest position of the “upper crust” of funds monitored by Insider Monkey, comprising about $24.1 million in stock, and Jeffrey Moskowitz’s Harvey Partners was right behind this move, as the fund dropped about $1.7 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Donaldson Company, Inc. (NYSE:DCI) but similarly valued. These stocks are Manpowergroup Inc (NYSE:MAN), RenaissanceRe Holdings Ltd. (NYSE:RNR), TreeHouse Foods Inc. (NYSE:THS), and Robert Half International Inc. (NYSE:RHI). This group of stocks’ market values match DCI’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MAN 29 447052 5
RNR 17 278991 2
THS 21 297758 -3
RHI 21 252953 -5

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $319 million. That figure was $130 million in DCI’s case. Manpowergroup Inc (NYSE:MAN) is the most popular stock in this table. On the other hand RenaissanceRe Holdings Ltd. (NYSE:RNR) is the least popular one with only 17 bullish hedge fund positions. Compared to these stocks Donaldson Company, Inc. (NYSE:DCI) is even less popular than RenaissanceRe Holdings Ltd. (NYSE:RNR). 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.

Disclosure: None