Is FirstEnergy Corp. (FE) A Good Stock To Buy Right Now?

As industrywide interest jumped, key hedge funds were leading the bulls’ herd. Balyasny Asset Management, established the most outsized position in FirstEnergy Corp. (NYSE:FE). Balyasny Asset Management had $115 million invested in the company at the end of the quarter. Daniel S. Och’s OZ Management also initiated a $43.5 million position during the quarter. The other funds with brand new FE positions are David Harding’s Winton Capital Management, Robert Vollero and Gentry T. Beach’s Vollero Beach Capital Partners, and Ken Griffin’s Citadel Investment Group.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as FirstEnergy Corp. (NYSE:FE) but similarly valued. These stocks are NetEase, Inc (ADR) (NASDAQ:NTES), Workday Inc (NYSE:WDAY), Credicorp Ltd. (USA) (NYSE:BAP), and Parker-Hannifin Corporation (NYSE:PH). This group of stocks’ market valuations match FE’s market valuation.

As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $1.55 billion. That figure was $1.31 billion in FE’s case. NetEase, Inc (ADR) (NASDAQ:NTES) is the most popular stock in this table. On the other hand Credicorp Ltd. (USA) (NYSE:BAP) is the least popular one with only 22 bullish hedge fund positions. FirstEnergy Corp. (NYSE:FE) 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 NTES might be a better candidate to consider a long position.

Disclosure: None