Pepco Holdings, Inc. (POM): Are Hedge Funds Right About This Stock?

As industrywide interest jumped, key hedge funds have jumped into Pepco Holdings, Inc. (NYSE:POM) headfirst. TIG Advisors created the largest position in Pepco Holdings, Inc. (NYSE:POM), while Howard Guberman’s Gruss Asset Management also initiated a $22.3 million position during the quarter. The other funds with brand new POM positions are Jos Shaver’s Electron Capital Partners, and Glenn Russell Dubin’s Highbridge Capital Management.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Pepco Holdings, Inc. (NYSE:POM) but similarly valued. These stocks are Taro Pharmaceutical Industries Ltd. (NYSE:TARO), Alexandria Real Estate Equities Inc (NYSE:ARE), WABCO Holdings Inc. (NYSE:WBC), and EQT GP Holdings LP (NYSE:EQGP). This group of stocks’ market values match POM’s market value.

As you can see these stocks had an average of 20.75 hedge funds with bullish positions and the average amount invested in these stocks was $427 million, versus $279 million in POM’s case. WABCO Holdings Inc. (NYSE:WBC) is the most popular stock in this table. On the other hand EQT GP Holdings LP (NYSE:EQGP) is the least popular one with only 5 bullish hedge fund positions. Pepco Holdings, Inc. (NYSE:POM) 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 WBC might be a better candidate to consider a long position.