Should You Buy General Electric Company (GE)?

Consequently, key money managers were breaking ground themselves. Trian Partners, managed by Nelson Peltz, created the largest position in General Electric Company (NYSE:GE), worth $2.28 billion as mentioned earlier. Dmitry Balyasny’s Balyasny Asset Management also made a $62.7 million investment in the stock during the quarter. The other funds with brand new GE positions are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, John Osterweis’s Osterweis Capital Management, and Daniel S. Och’s OZ Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as General Electric Company (NYSE:GE) but similarly valued. These stocks are Facebook Inc (NASDAQ:FB), China Mobile Ltd. (ADR) (NYSE:CHL), Amazon.com, Inc. (NASDAQ:AMZN), and Nestle SA Reg Shs. Ser. B Spons (ADR) (OTCMKTS:NSRGY). This group of stocks’ market valuations are closest to GE’s market valuation.

As you can see these stocks had an average of 67 hedge funds with bullish positions and the average amount invested in these stocks was $6.34 billion. That figure was $5.95 billion in GE’s case. Facebook Inc (NASDAQ:FB) is the most popular stock in this table, while Nestle SA Reg Shs. Ser. B Spons (ADR) (OTCMKTS:NSRGY) is the laggard with only 5 bullish hedge fund positions. General Electric Company (NYSE:GE) is not the most popular stock in this group, but hedge fund interest is still above average. While this is a slightly positive signal, we’d rather spend our time researching stocks that hedge funds are piling on. In this regard FB might be a better candidate to consider a long position.