Transocean LTD (RIG): Are Hedge Funds Right About This Stock?

With a general bullishness amongst the heavyweights, key money managers have jumped into Transocean LTD (NYSE:RIG) headfirst. Luminus Management established the biggest position in Transocean LTD (NYSE:RIG). Luminus Management had $18.4 million invested in the company at the end of the quarter. Don Morgan’s Brigade Capital also initiated a $15.4 million position during the quarter. The other funds with new positions in the stock are Todd J. Kantor’s Encompass Capital Advisors, Mark Weissman, Adam Cohen and David Coleto’s Caspian Capital Partners, and Colin Hall and James Davidson’s Long Oar Global Investors.

Let’s now review hedge fund activity in other stocks similar to Transocean LTD (NYSE:RIG). We will take a look at EQT Midstream Partners LP (NYSE:EQM), Marvell Technology Group Ltd. (NASDAQ:MRVL), Aqua America Inc (NYSE:WTR), and Dunkin Brands Group Inc (NASDAQ:DNKN). This group of stocks’ market values matches Transocean LTD (NYSE:RIG)’s market value.

As you can see, these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $215 million. That figure was $612 million in Transocean LTD (NYSE:RIG)’s case. Marvell Technology Group Ltd. (NASDAQ:MRVL) is the most popular stock in this table. On the other hand, Aqua America Inc (NYSE:WTR) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks, Transocean LTD (NYSE:RIG) 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.