Is Mead Johnson Nutrition CO (MJN) The Right Stock For Your Portfolio?

As industrywide interest jumped, key money managers have jumped into Mead Johnson Nutrition CO (NYSE:MJN) headfirst. Paulson & Co, managed by John Paulson, established the most valuable position in Mead Johnson Nutrition CO (NYSE:MJN). Paulson & Co had $6.2 million invested in the company at the end of the third quarter. Joel Greenblatt’s Gotham Asset Management also initiated a $6.1 million position during the quarter. The other funds with brand new MJN positions are Anand Parekh’s Alyeska Investment Group, Jeffrey Altman’s Owl Creek Asset Management, and David Harding’s Winton Capital Management.

Let’s check out hedge fund activity in other stocks similar to Mead Johnson Nutrition CO (NYSE:MJN). These stocks are Marriott International Inc (NYSE:MAR), ORIX Corporation (ADR) (NYSE:IX), Stanley Black & Decker, Inc. (NYSE:SWK), and HCP, Inc. (NYSE:HCP). All of these stocks’ market caps match MJN’s market cap.

As you can see these stocks had an average of 24 investors with bullish positions and the average amount invested in these stocks was $870 million. That figure was $619 million in MJN’s case. Marriott International Inc (NYSE:MAR) is the most popular stock in this table. On the other hand ORIX Corporation (ADR) (NYSE:IX) is the least popular one with only 6 bullish hedge fund positions. Mead Johnson Nutrition CO (NYSE:MJN) 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 Marriott International Inc (NYSE:MAR) might be a better candidate to consider a long position.