Should You Add Regal Entertainment Group (RGC) to Your Portfolio?

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As industrywide interest jumped, some big names were leading the bulls’ herd. Balyasny Asset Management established the most valuable position in Regal Entertainment Group (NYSE:RGC). Steve Cohen’s Point72 Asset Management also initiated a $15.9 million position during the third quarter. The following funds were also among the new RGC investors: Ken Griffin’s Citadel Investment Group, Daniel S. Och’s OZ Management, and Israel Englander’s Millennium Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Regal Entertainment Group (NYSE:RGC) but similarly valued. We will take a look at Sprouts Farmers Market Inc (NASDAQ:SFM), Rice Energy Inc (NYSE:RICE), NCR Corporation (NYSE:NCR), and WEX Inc (NYSE:WEX). This group of stocks’ market values match RGC’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SFM 22 139941 0
RICE 43 1215099 5
NCR 27 245444 5
WEX 10 171447 -1

As you can see these stocks had an average of 26 funds with bullish positions and the average amount invested in these stocks was $443 million, versus $158 million in RGC’s case. Rice Energy Inc (NYSE:RICE) is the most popular stock in this table. On the other hand WEX Inc (NYSE:WEX) is the least popular one with only 10 bullish hedge fund positions. Regal Entertainment Group (NYSE:RGC) 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 Rice Energy Inc (NYSE:RICE) might be a better candidate to consider taking a long position in.

Disclosure: none

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