Is Roper Technologies Inc (ROP) Going to Burn These Hedge Funds?

With a general bullishness amongst the heavyweights, key hedge funds have jumped into Roper Technologies Inc (NYSE:ROP) headfirst. Clough Capital Partners, managed by Charles Clough, initiated the largest position in Roper Technologies Inc (NYSE:ROP). The fund had $35.9 million invested in the company at the end of the quarter. David Harding’s Winton Capital Management also initiated a $20.5 million position during the quarter. The other funds with new positions in the stock are Greg Poole’s Echo Street Capital Management, Steve Cohen’s Point72 Asset Management, and George Hall’s Clinton Group.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Roper Technologies Inc (NYSE:ROP) but similarly valued. These stocks are Amphenol Corporation (NYSE:APH), Campbell Soup Company (NYSE:CPB), NetEase, Inc (ADR) (NASDAQ:NTES), and Endo Health Solutions Inc (NASDAQ:ENDP). All of these stocks’ market caps resemble ROP’s market cap.

As you can see these stocks had an average of 35 hedge funds with bullish positions and the average amount invested in these stocks was $1.77 billion. Endo Health Solutions Inc (NASDAQ:ENDP) is the most popular stock in this table, while Campbell Soup Company (NYSE:CPB) is the least popular one with only 25 bullish hedge fund positions. Roper Technologies Inc (NYSE:ROP) is not the least popular stock in this group, but hedge fund interest is still below average and the $683 million worth of stock held by top funds is below the average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ENDP might be a better candidate to consider a long position.