Should You Buy United Therapeutics Corporation (UTHR)?

As one would reasonably expect, specific money managers were breaking ground themselves. Sabby Capital, managed by Hal Mintz, assembled the most valuable position in United Therapeutics Corporation (NASDAQ:UTHR). Sabby Capital had $3.3 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $2.9 million position during the quarter. The other funds with new positions in the stock are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Matthew Tewksbury’s Stevens Capital Management, and Mike Vranos’ Ellington.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as United Therapeutics Corporation (NASDAQ:UTHR) but similarly valued. These stocks are Braskem SA (ADR) (NYSE:BAK), NRG Energy Inc (NYSE:NRG), B/E Aerospace Inc (NASDAQ:BEAV), and Great Plains Energy Incorporated (NYSE:GXP). All of these stocks’ market caps match UTHR’s market cap.

As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $641 million. That figure was $1.26 billion in UTHR’s case. B/E Aerospace Inc (NASDAQ:BEAV) is the most popular stock in this table. On the other hand Braskem SA (ADR) (NYSE:BAK) is the least popular one with only 8 bullish hedge fund positions. United Therapeutics Corporation (NASDAQ:UTHR) 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 BEAV might be a better candidate to consider a long position.

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Disclosure: None