Is CMS Energy Corporation (CMS) a Good Stock to Buy?

As industrywide interest jumped, key hedge funds were breaking ground themselves. Stevens Capital Management, led by Matthew Tewksbury, created the largest position in CMS Energy Corporation (NYSE:CMS). Stevens Capital Management had $3.9 million invested in the company at the end of the quarter. David Harding’s Winton Capital Management also initiated a $1.6 million position during the quarter. The other funds with brand new CMS positions are Michael Platt and William Reeves’s BlueCrest Capital Mgmt., Joel Greenblatt’s Gotham Asset Management, and Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as CMS Energy Corporation (NYSE:CMS) but similarly valued. We will take a look at Fastenal Company (NASDAQ:FAST), MGM Resorts International (NYSE:MGM), Marathon Oil Corporation (NYSE:MRO), and National-Oilwell Varco, Inc. (NYSE:NOV). This group of stocks’ market values are closest to CMS’s market value.

As you can see these stocks had an average of 31 funds with bullish positions and the average amount invested in these stocks was $867 million. That figure was $395 million in CMS’s case. MGM Resorts International (NYSE:MGM) is the most popular stock in this table. On the other hand Marathon Oil Corporation (NYSE:MRO) is the least popular one with 22 bullish hedge fund positions. Compared to these stocks CMS Energy Corporation (NYSE:CMS) is even less popular than MRO. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: none