Are Hedge Funds Right To Be Bullish On The Bank of New York Mellon Corporation (BK)?

As one would reasonably expect, key hedge funds have jumped into The Bank of New York Mellon Corporation (NYSE:BK) headfirst. Point72 Asset Management, led by Steve Cohen, established the most outsized position in The Bank of New York Mellon Corporation (NYSE:BK). Point72 Asset Management had $21.8 million invested in the company at the end of the quarter. Matthew Tewksbury’s Stevens Capital Management also made a $14 million investment in the stock during the quarter. The other funds with new positions in the stock are David Costen Haley’s HBK Investments, Benjamin A. Smith’s Laurion Capital Management, and Ken Griffin’s Citadel Investment Group.

Let’s also examine hedge fund activity in other stocks similar to The Bank of New York Mellon Corporation (NYSE:BK). These stocks are Kinder Morgan Inc (NYSE:KMI), Phillips 66 (NYSE:PSX), Target Corporation (NYSE:TGT), and BCE Inc. (USA) (NYSE:BCE). All of these stocks’ market caps resemble BK’s market cap.

As you can see these stocks had an average of 36 funds with bullish positions and the average amount invested in these stocks was $2.76 billion. That figure was $3.52 billion in BK’s case. Kinder Morgan Inc (NYSE:KMI) is the most popular stock in this table with 68 funds holding shares. On the other hand BCE Inc. (USA) (NYSE:BCE) is the least popular one with only 16 bullish hedge fund positions. The Bank of New York Mellon Corporation (NYSE:BK) 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 Kinder Morgan Inc (NYSE:KMI) might be a better candidate to consider taking a long stake in.

Disclosure: None