Is Allied World Assurance Co Holdings, AG. (AWH) A Good Stock To Buy?

Since Allied World Assurance Co Holdings, AG. (NYSE:AWH) has weathered a decline in interest from hedge fund managers, logic holds that there exists a select few hedgies who were dropping their positions entirely heading into Q4. Interestingly, Chuck Royce’s Royce & Associates said goodbye to the largest position of the “upper crust” of funds tracked by Insider Monkey, comprising close to $6.5 million in stock. Glenn Russell Dubin’s fund, Highbridge Capital Management, also dumped its stock, about $2 million worth of AWH shares.

Let’s go over hedge fund activity in other stocks similar to Allied World Assurance Co Holdings, AG. (NYSE:AWH). We will take a look at Patterson-UTI Energy, Inc. (NASDAQ:PTEN), Enstar Group Ltd. (NASDAQ:ESGR), CNO Financial Group Inc (NYSE:CNO), and Piedmont Office Realty Trust, Inc. (NYSE:PDM). This group of stocks’ market valuations are closest to AWH’s market valuation.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $295 million. That figure was $224 million in AWH’s case. Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is the most popular stock in this table. On the other hand Piedmont Office Realty Trust, Inc. (NYSE:PDM) is the least popular one with only 10 bullish hedge fund positions. Allied World Assurance Co Holdings, AG. (NYSE:AWH) 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 PTEN might be a better candidate to consider taking a long position in.

Disclosure: none.