Here is What Hedge Funds Think About Towers Watson & Co (TW)

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Now, key hedge funds have been driving this bullishness. Egerton Capital Limited, managed by John Armitage, initiated the most valuable position in Towers Watson & Co (NASDAQ:TW). Egerton Capital Limited had $349.9 million invested in the company at the end of the quarter. Scott McLellan’s Marble Arch Investments also initiated a $135.2 million position during the quarter. The other funds with new positions in the stock are Richard Driehaus’ Driehaus Capital, Jim Simons’ Renaissance Technologies, and Jeffrey Ubben’s ValueAct Capital.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Towers Watson & Co (NASDAQ:TW) but similarly valued. We will take a look at JetBlue Airways Corporation (NASDAQ:JBLU), SCANA Corporation (NYSE:SCG), Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR), and New York Community Bancorp, Inc. (NYSE:NYCB). All of these stocks’ market caps match TW’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
JBLU 42 714193 -8
SCG 12 73593 -7
GMCR 16 466169 -13
NYCB 18 128407 0

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $346 million. That figure was $1,226 million in TW’s case. JetBlue Airways Corporation (NASDAQ:JBLU) is the most popular stock in this table. On the other hand SCANA Corporation (NYSE:SCG) is the least popular one with only 12 bullish hedge fund positions. Towers Watson & Co (NASDAQ:TW) 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 JBLU might be a better candidate to consider a long position.

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