Is The Dow Chemical Company (DOW) A Good Stock To Buy?

Page 2 of 2

Because The Dow Chemical Company (NYSE:DOW) has faced declining sentiment from the aggregate hedge fund industry, it’s safe to say that there exists a select few fund managers that slashed their full holdings by the end of the third quarter. Interestingly, Daniel S. Och’s OZ Management dropped the largest stake of all the hedgies tracked by Insider Monkey, totaling an estimated $47.8 million in call options. Daniel S. Och’s fund, OZ Management, also dropped its call options, about $29.1 million worth.

Let’s check out hedge fund activity in other stocks similar to The Dow Chemical Company (NYSE:DOW). These stocks are HDFC Bank Limited (ADR) (NYSE:HDB), BT Group plc (ADR) (NYSE:BT), Statoil ASA (ADR) (NYSE:STO), and ConocoPhillips (NYSE:COP). This group of stocks’ market caps are closest to DOW’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
HDB 23 1442108 0
BT 7 114672 -4
STO 10 85112 0
COP 40 1329333 -3

As you can see these stocks had an average of 20 investors tracked by us with bullish positions and the average amount invested in these stocks was $743 million. That figure was $2.69 billion in DOW’s case. ConocoPhillips (NYSE:COP) is the most popular stock in this table. On the other hand BT Group plc (ADR) (NYSE:BT) is the least popular one with only seven funds holding shares. Compared to these stocks The Dow Chemical Company (NYSE:DOW) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Page 2 of 2