NextEra Energy, Inc. (NEE): Are Hedge Funds Right About This Stock?

With a general bullishness amongst the heavyweights, specific money managers were breaking ground themselves. Zimmer Partners, managed by Stuart J. Zimmer, initiated the most outsized position in NextEra Energy, Inc. (NYSE:NEE). Zimmer Partners had $51.5 million invested in the company at the end of the quarter. Marc Lisker, Glenn Fuhrman and John Phelan’s MSDC Management also initiated a $49.6 million position during the quarter. The following funds were also among the new NEE investors: Glenn Russell Dubin’s Highbridge Capital Management, George Soros’s Soros Fund Management, and Clint Carlson’s Carlson Capital.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as NextEra Energy, Inc. (NYSE:NEE) but similarly valued. These stocks are Infosys Ltd ADR (NYSE:INFY), Netflix, Inc. (NASDAQ:NFLX), E I Du Pont De Nemours And Co (NYSE:DD), and The Bank of New York Mellon Corporation (NYSE:BK). This group of stocks’ market values are closest to NEE’s market value.

As you can see these stocks had an average of 41.5 hedge funds with bullish positions and the average amount invested in these stocks was $4,013 million. That figure was $1,811 million in NEE’s case. Netflix, Inc. (NASDAQ:NFLX) is the most popular stock in this table. On the other hand Infosys Ltd ADR (NYSE:INFY) is the least popular one with only 19 bullish hedge fund positions. NextEra Energy, Inc. (NYSE:NEE) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard NFLX might be a better candidate to consider a long position.