As industrywide interest jumped, key hedge funds have been driving this bullishness. Winton Capital Management, managed by David Harding, created the biggest position in Analog Devices, Inc. (NASDAQ:ADI). Winton Capital Management had $17.9 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also initiated a $16.5 million position during the quarter. The following funds were also among the new ADI investors: Daniel Benton’s Andor Capital Management, Ray Dalio’s Bridgewater Associates, and Andrew Sandler’s Sandler Capital Management.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Analog Devices, Inc. (NASDAQ:ADI) but similarly valued. These stocks are Spectra Energy Corp. (NYSE:SE), Tyson Foods, Inc. (NYSE:TSN), Telekomunikasi Indns Tbk Prshn PP PT-ADR (NYSE:TLK), and ConAgra Foods, Inc. (NYSE:CAG). This group of stocks’ market valuations resemble ADI’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SE | 24 | 146526 | 2 |
| TSN | 46 | 1810004 | -4 |
| TLK | 9 | 28359 | 0 |
| CAG | 38 | 2512264 | 7 |
As you can see these stocks had an average of 29.25 hedge funds with bullish positions and the average amount invested in these stocks was $1124 million. That figure was $1190 million in ADI’s case. Tyson Foods, Inc. (NYSE:TSN) is the most popular stock in this table. On the other hand Telekomunikasi Indns Tbk Prshn PP PT-ADR (NYSE:TLK) is the least popular one with only 9 bullish hedge fund positions. Analog Devices, Inc. (NASDAQ:ADI) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard TSN might be a better candidate to consider a long position.
