Do Hedge Funds Agree with Jim Cramer on These Hot Stocks?

Cramer thinks Alcoa Inc (NYSE:AA) is a great long term holding ‘pending the breakup into two companies’. Alcoa has been around for more than a century, and makes high quality end commodity products that are used in a disparate number of growing industries. Its shares trade at a forward P/E of 13.3 and have a dividend yield of 1.17%. Our data show that hedge funds agree with Cramer on Alcoa Inc (NYSE:AA) as 45 funds were long the stock in the second quarter, up by two from the prior quarter. The value of the smart money’s collective holdings in the stock increased to $1.12 billion at the end of June, up $30 million from the end of March and amassed 8.30% of the company. Robert Rodriguez and Steven Romick‘s First Pacific Advisors holds 34.89 million shares.

Last but not least Cramer is a fan of Pure Storage Inc (NYSE:PSTG), a fast growing, tech company that makes advanced flash memory chips based on data storage arrays. Cramer believes the stock is a good long term holding and that any ‘weakness could be a nice buying opportunity’ as long as investors use limit orders and build their positions slowly.

Since Pure Storage Inc (NYSE:PSTG) has just gone public, we don’t have hedge fund data concerning the stock yet, but we note many tech stocks coming out of the gate have historically been momentum stocks that sometimes weaken before their six-month IPO lockup periods.

Disclosure: None