Hedge Funds Are Crazy About Fortune Brands Home & Security Inc (FBHS)

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As aggregate interest increased, specific money managers have jumped into Fortune Brands Home & Security Inc (NYSE:FBHS) headfirst. Partner Fund Management created the largest position in Fortune Brands Home & Security Inc (NYSE:FBHS). Min Htoo and Jordan Teramo’s Anandar Capital Management also initiated a $9.2 million position during the quarter. The following funds were also among the new FBHS investors: Andrew Sandler’s Sandler Capital Management, Gregg Moskowitz’s Interval Partners, and D. E. Shaw’s D E Shaw.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Fortune Brands Home & Security Inc (NYSE:FBHS) but similarly valued. These stocks are Buckeye Partners, L.P. (NYSE:BPL), iShares NASDAQ Biotechnology Index (ETF) (NASDAQ:IBB), AerCap Holdings N.V. (NYSE:AER), and Staples, Inc. (NASDAQ:SPLS). All of these stocks’ market caps are closest to FBHS’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BPL 15 71831 4
IBB 19 321116 8
AER 77 2994191 0
SPLS 54 1338302 7

As you can see these stocks had an average of 41 hedge funds with bullish positions and the average amount invested in these stocks was $1.18 billion, compared to $214 million in FBHS’s case. AerCap Holdings N.V. (NYSE:AER) is the most popular stock in this table. On the other hand Buckeye Partners, L.P. (NYSE:BPL) is the least popular one with only 15 bullish hedge fund positions. Fortune Brands Home & Security Inc (NYSE:FBHS) 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 AER might be a better candidate to consider for a long position.

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