Is Steel Dynamics, Inc. (STLD) a Good Stock To Buy?

Now, specific money managers were breaking ground themselves. Highline Capital Management, led by Jacob Doft, established the most valuable position in Steel Dynamics, Inc. (NASDAQ:STLD). Highline Capital Management had $70.5 million invested in the company at the end of the quarter. Jonathan Barrett and Paul Segal’s Luminus Management also made a $25.7 million investment in the stock during the quarter. The other funds with new positions in the stock are Steve Cohen’s Point72 Asia (Singapore), Ken Griffin’s Citadel Investment Group, and Sander Gerber’s Hudson Bay Capital Management.

Let’s now review hedge fund activity in other stocks similar to Steel Dynamics, Inc. (NASDAQ:STLD). We will take a look at Commscope Holding Company Inc (NASDAQ:COMM), Owens Corning (NYSE:OC), Sensata Technologies Holding N.V. (NYSE:ST), and Macquarie Infrastructure Company LLC (NYSE:MIC). This group of stocks’ market valuations match STLD’s market valuation.

As you can see these stocks had an average of 40 funds with bullish positions at the end of September and the average amount invested in these stocks was $1.63 billion. That figure was $634 million in STLD’s case. Commscope Holding Company Inc (NASDAQ:COMM) is the most popular stock in this table, while Sensata Technologies Holding N.V. (NYSE:ST) is the least popular one with only 27 funds reporting long positions. Steel Dynamics, Inc. (NASDAQ:STLD) is not the least popular stock in this group but hedge fund interest is still below 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 Commscope Holding Company Inc (NASDAQ:COMM) might be a better candidate to consider a long position.