Is Reinsurance Group of America Inc (RGA) A Good Stock To Buy?

As aggregate interest increased, key hedge funds have been driving this bullishness. Interval Partners, led by Gregg Moskowitz, initiated the biggest position in Reinsurance Group of America Inc (NYSE:RGA). Interval Partners had $2.5 million invested in the company at the end of the quarter. Matthew Tewksbury’s Stevens Capital Management also made a $1.1 million investment in the stock during the quarter. The following funds were also among the new RGA investors: Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners, Ken Griffin’s Citadel Investment Group, and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s also examine hedge fund activity in other stocks similar to Reinsurance Group of America Inc (NYSE:RGA). These stocks are Mercadolibre Inc (NASDAQ:MELI), Liberty Broadband Corp (NASDAQ:LBRDK), FMC Corp (NYSE:FMC), and Liberty Broadband Corp (NASDAQ:LBRDA). This group of stocks’ market caps resemble RGA’s market cap.

As you can see these stocks had an average of 32 hedge funds with bullish positions and the average amount invested in these stocks was $1.44 billion. That figure was $287 million in RGA’s case. Liberty Broadband Corp (NASDAQ:LBRDK) is the most popular stock in this table. On the other hand Liberty Broadband Corp (NASDAQ:LBRDA) is the least popular one with only 27 bullish hedge fund positions. Compared to these stocks Reinsurance Group of America Inc (NYSE:RGA) is even less popular than LBRDA. 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