Should You Add ResMed Inc. (RMD) to Your Portfolio?

As one would reasonably expect, key hedge funds have been driving this bullishness. Israel Englander’s Millennium Management assembled the biggest position in ResMed Inc. (NYSE:RMD). Millennium Management had $11.6 million invested in the company at the end of the quarter. George Hall’s Clinton Group also made a $6.1 million investment in the stock during the quarter. The following funds were also among the new RMD investors: Alec Litowitz and Ross Laser’s Magnetar Capital, Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital, and Ken Griffin’s Citadel Investment Group.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as ResMed Inc. (NYSE:RMD) but similarly valued. We will take a look at Shaw Communications Inc (USA) (NYSE:SJR), Cheniere Energy, Inc. (NYSEAMEX:LNG), Stericycle Inc (NASDAQ:SRCL), and Advanced Semiconductor Engineering (ADR) (NYSE:ASX). This group of stocks’ market caps match RMD’s market cap.

As you can see these stocks had an average of 24 investors with bullish positions and the average amount invested in these stocks was $1.38 billion. That figure was just $205 million in RMD’s case. Cheniere Energy, Inc. (NYSEAMEX:LNG) is the most popular stock in this table. On the other hand Shaw Communications Inc (USA) (NYSE:SJR) is the least popular one with only nine investors holding shares. ResMed Inc. (NYSE:RMD) 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 Cheniere Energy, Inc. (NYSEAMEX:LNG) might be a better candidate to consider taking a long position in.