Is Albemarle Corporation (ALB) A Good Stock to Own?

Because Albemarle Corporation (NYSE:ALB) has faced a decline in interest from the aggregate hedge fund industry, it’s safe to say that there were a few hedgies who sold off their full holdings by the end of the third quarter. Interestingly, Bain Capital’s Brookside Capital dropped the largest investment of the 700 funds watched by Insider Monkey, totaling about $82.5 million in call options. Christopher A. Winham’s fund, Tide Point Capital, also sold off its call options, about $59.5 million worth. These transactions are interesting, as total hedge fund interest fell by 2 funds by the end of the third quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Albemarle Corporation (NYSE:ALB) but similarly valued. These stocks are Fortune Brands Home & Security Inc (NYSE:FBHS), CBRE Group Inc (NYSE:CBG), ResMed Inc. (NYSE:RMD), and Shaw Communications Inc (USA) (NYSE:SJR). This group of stocks’ market valuations are closest to ALB’s market valuation.

As you can see these stocks had an average of 21.25 hedge funds with bullish positions and the average amount invested in these stocks was $636 million. That figure was $883 million in ALB’s case. CBRE Group Inc (NYSE:CBG) is the most popular stock in this table. On the other hand Shaw Communications Inc (USA) (NYSE:SJR) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Albemarle Corporation (NYSE:ALB) 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