Is Thermo Fisher Scientific Inc. (TMO) a Good Stock to Invest in?

We at Insider Monkey have gone over 700 13F filings that hedge funds and prominent investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30. In this article we look at what those investors think of Thermo Fisher Scientific Inc. (NYSE:TMO).

When it comes to Thermo Fisher Scientific, prominent investors seem to be taking a pessimistic view, as the number of long hedge fund positions fell by 11 in recent months. However, to get a better sense of its popularity, at the end of this article we will also compare TMO to other stocks including Time Warner Inc (NYSE:TWX), American Express Company (NYSE:AXP), and Abbott Laboratories (NYSE:ABT).

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.

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Now, we’re going to view the recent action encompassing Thermo Fisher Scientific Inc. (NYSE:TMO).

Hedge fund activity in Thermo Fisher Scientific Inc. (NYSE:TMO)

At the end of the third quarter, a total of 46 funds from the Insider Monkey database were long Thermo Fisher Scientific, down by 19% from the end of June. With the smart money’s capital changing hands, there exists a select group of noteworthy hedge fund managers who were upping their holdings considerably (or already accumulated large positions).

According to Insider Monkey’s hedge fund database, Boykin Curry’s Eagle Capital Management has the largest position in Thermo Fisher Scientific Inc. (NYSE:TMO), worth close to $647.4 million, accounting for 2.8% of its total 13F portfolio. Sitting at the No. 2 spot is Glenview Capital, managed by Larry Robbins, which holds a $427.3 million position; 3.1% of its 13F portfolio is allocated to the stock. Other members of the smart money with similar optimism comprise Robert Joseph Caruso’s Select Equity Group, Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC and Principal Global Investors’s Columbus Circle Investors.