Hedge Funds Are Buying Perrigo Company plc Ordinary Shares (PRGO)

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As aggregate interest increased, key money managers were breaking ground themselves. Starboard Value LP established the most valuable position in Perrigo Company plc Ordinary Shares (NASDAQ:PRGO). Malcolm Fairbairn’s Ascend Capital also initiated a $78.9 million position during the quarter. The other funds with new positions in the stock are Anand Parekh’s Alyeska Investment Group, Jim Simons’ Renaissance Technologies, and Arthur B Cohen and Joseph Healey’s Healthcor Management LP.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Perrigo Company plc Ordinary Shares (NASDAQ:PRGO) but similarly valued. These stocks are Fidelity National Financial Inc (NYSE:FNF), CMS Energy Corporation (NYSE:CMS), Fastenal Company (NASDAQ:FAST), and MGM Resorts International (NYSE:MGM). This group of stocks’ market valuations are closest to PRGO’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FNF 37 1124880 -2
CMS 19 395362 1
FAST 23 624673 -1
MGM 53 2300675 -6

As you can see these stocks had an average of 33 hedge funds with bullish positions and the average amount invested in these stocks was $1.11 billion. That figure was $1.62 billion in PRGO’s case. MGM Resorts International (NYSE:MGM) is the most popular stock in this table. On the other hand CMS Energy Corporation (NYSE:CMS) is the least popular one with only 19 bullish hedge fund positions. Perrigo Company plc Ordinary Shares (NASDAQ:PRGO) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard MGM might be a better candidate to consider a long position.

Disclosure: None

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