Should You Buy Science Applications International Corp (SAIC)?

With a general bullishness amongst the heavyweights, key hedge funds have jumped into Science Applications International Corp (NYSE:SAIC) headfirst. Adage Capital Management, managed by Phill Gross and Robert Atchinson, created the most valuable position in Science Applications International Corp (NYSE:SAIC). Adage Capital Management had $14.4 million invested in the company at the end of the quarter. Ken Grossman and Glen Schneider’s SG Capital Management also initiated a $9.1 million position during the quarter. The other funds with brand new SAIC positions are Jim Simons’s Renaissance Technologies, Israel Englander’s Millennium Management, Peter Muller’s PDT Partners, and Clint Carlson’s Carlson Capital.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Science Applications International Corp (NYSE:SAIC) but similarly valued. These stocks are Entegris Inc (NASDAQ:ENTG), Black Hills Corp (NYSE:BKH), Alliance Holdings GP, L.P. (NASDAQ:AHGP), and Dominion Midstream Partners LP (NYSE:DM). This group of stocks’ market caps resemble SAIC’s market cap.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $140 million. That figure was $126 million in SAIC’s case. Entegris Inc (NASDAQ:ENTG) is the most popular stock in this table. On the other hand Dominion Midstream Partners LP (NYSE:DM) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Science Applications International Corp (NYSE:SAIC) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.