Here’s Why Valeant Pharmaceuticals Intl Inc (VRX)’s Stock Surged on Friday

Interestingly, Peter Adam Hochfelder’s Brahman Capital cut the biggest position of the “upper crust” of funds monitored by Insider Monkey, totaling about $825.2 million in stock. Andreas Halvorsen’s fund, Viking Global, also cut its stock, about $792.2 million worth. These moves are interesting, as aggregate hedge fund interest was cut by 12 funds in the fourth quarter.

Let’s go over hedge fund activity in other stocks similar to Valeant Pharmaceuticals Intl Inc (NYSE:VRX). We will take a look at Expeditors International of Washington (NASDAQ:EXPD), Shaw Communications Inc (USA) (NYSE:SJR), Fortune Brands Home & Security Inc (NYSE:FBHS), and Buckeye Partners, L.P. (NYSE:BPL). This group of stocks’ market values match VRX’s market value.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $195 million. That figure was $3.15 billion in VRX’s case. Expeditors International of Washington (NASDAQ:EXPD) 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 12 bullish hedge fund positions. Compared to these stocks Valeant Pharmaceuticals Intl Inc (NYSE:VRX) 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.

Disclosure: None