Is Xylem Inc (XYL) A Good Stock To Buy?

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Because Xylem Inc (NYSE:XYL) has faced a decline in interest from the entirety of the hedge funds we track, logic holds that there was a specific group of money managers who sold off their positions entirely last quarter. At the top of the heap, Jim Simons’ Renaissance Technologies got rid of the largest position of the “upper crust” of funds studied by Insider Monkey, comprising about $27.3 million in stock, and Israel Englander’s Millennium Management was right behind this move, as the fund cut about $5.5 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks similar to Xylem Inc (NYSE:XYL). We will take a look at CBRE Group Inc (NYSE:CBG), Vereit Inc (NYSE:VER), Bancolombia SA (ADR) (NYSE:CIB), and Buckeye Partners, L.P. (NYSE:BPL). This group of stocks’ market values match XYL’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CBG 34 1890453 6
VER 27 664382 -2
CIB 9 70375 3
BPL 13 67387 -1

As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $673 million. That figure was $469 million in XYL’s case. CBRE Group Inc (NYSE:CBG) is the most popular stock in this table. On the other hand Bancolombia SA (ADR) (NYSE:CIB) is the least popular one with only 9 bullish hedge fund positions. Xylem Inc (NYSE:XYL) 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 CBG might be a better candidate to consider taking a long position in.

Disclosure: none.

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