Baxter International Inc. (BAX): Are Hedge Funds Right About This Stock?

With a general bullishness amongst the heavyweights, key hedge funds have jumped into Baxter International Inc. (NYSE:BAX) headfirst. JANA Partners established the most valuable position in Baxter International Inc. (NYSE:BAX). JANA Partners had $413.3 million invested in the company at the end of the quarter. Jeffrey Smith’s Starboard Value LP also made a $41.1 million investment in the stock during the quarter. The other funds with brand new BAX positions are Daniel S. Och’s OZ Management, Clint Carlson’s Carlson Capital, and Peter Muller’s PDT Partners.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Baxter International Inc. (NYSE:BAX) but similarly valued. We will take a look at T. Rowe Price Group, Inc. (NASDAQ:TROW), St. Jude Medical, Inc. (NYSE:STJ), Analog Devices, Inc. (NASDAQ:ADI), and Spectra Energy Corp. (NYSE:SE). All of these stocks’ market caps are similar to BAX’s market cap.

As you can see these stocks had an average of 31 hedge funds with bullish positions and the average amount invested in these stocks was $613 million. On the other hand, hedge funds have amassed a total of $5.37 billion worth of BAX’s shares. St. Jude Medical, Inc. (NYSE:STJ) is the most popular stock in this table with 41 funds reporting stakes, while Spectra Energy Corp. (NYSE:SE) is the least popular one. Compared to these stocks, Baxter International Inc. (NYSE:BAX) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.