Should You Buy Hubbell Incorporated (HUB.B)?

As one would reasonably expect, key hedge funds were breaking ground themselves. Clinton Group, managed by George Hall, established the largest position in Hubbell Incorporated (NYSE:HUB.B). Clinton Group had $5.6 million invested in the company at the end of the quarter. Peter Muller’s PDT Partners also made a $4.8 million investment in the stock during the quarter. The other funds with new positions in the stock are Sander Gerber’s Hudson Bay Capital Management, Ross Berman’s Green Owl Capital Management, and Glenn Russell Dubin’s Highbridge Capital Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Hubbell Incorporated (NYSE:HUB.B) but similarly valued. These stocks are NRG Energy Inc (NYSE:NRG), City National Corp (NYSE:CYN), Starwood Property Trust, Inc. (NYSE:STWD), and Southwestern Energy Company (NYSE:SWN). This group of stocks’ market valuations are closest to HUB’s market valuation.

As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $551 million. That figure was $540 million in HUB’s case. Southwestern Energy Company (NYSE:SWN) is the most popular stock in this table. On the other hand City National Corp (NYSE:CYN) is the least popular one with only 21 bullish hedge fund positions. Hubbell Incorporated (NYSE:HUB.B) 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 SWN might be a better candidate to consider a long position.