Is Domtar Corp (UFS) A Good Stock To Buy?

Consequently, key hedge funds were breaking ground themselves. Marshall Wace LLP, managed by Paul Marshall and Ian Wace, created the most outsized position in Domtar Corp (USA) (NYSE:UFS). Marshall Wace LLP had $6.8 million invested in the company at the end of the quarter. Noam Gottesman’s GLG Partners also made a $5.3 million investment in the stock during the quarter. The following funds were also among the new UFS investors: Peter Algert and Kevin Coldiron’s Algert Coldiron Investors, Alec Litowitz and Ross Laser’s Magnetar Capital, and Ray Dalio’s Bridgewater Associates.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Domtar Corp (USA) (NYSE:UFS) but similarly valued. We will take a look at Covanta Holding Corporation (NYSE:CVA), First Industrial Realty Trust, Inc. (NYSE:FR), Heartland Payment Systems, Inc. (NYSE:HPY), and Grupo Financiero Galicia S.A. (ADR) (NASDAQ:GGAL). This group of stocks’ market values resemble UFS’s market value.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $222 million. That figure was $112 million in UFS’s case. Covanta Holding Corporation (NYSE:CVA) is the most popular stock in this table. On the other hand Grupo Financiero Galicia S.A. (ADR) (NASDAQ:GGAL) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Domtar Corp (USA) (NYSE:UFS) 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.