After Sharp Q2 Fall, Hedge Fund Interest in Express Scripts Holding Company (ESRX) Rebounds in Q3

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With general bullishness amongst the heavyweights, specific money managers were breaking ground themselves. Citadel Investment Group, managed by Ken Griffin, created the biggest call position in Express Scripts Holding Company (NASDAQ:ESRX). Citadel Investment Group had $27.2 million invested in the position at the end of the third quarter. Hal Mintz’s Sabby Capital also made a $20.4 million investment in the stock during the quarter. The following funds were also among the new ESRX investors: Matthew Tewksbury’s Stevens Capital Management, Sander Gerber’s Hudson Bay Capital Management, and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Express Scripts Holding Company (NASDAQ:ESRX) but similarly valued. These stocks are Adobe Systems Incorporated (NASDAQ:ADBE), Telefonica S.A. (ADR) (NYSE:TEF), Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR), and Suncor Energy Inc. (USA) (NYSE:SU). All of these stocks’ market caps are similar to ESRX’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ADBE 59 2867463 1
TEF 5 7181 -1
PBR 32 1030690 9
SU 22 809820 -3

As you can see these stocks had an average of 29.5 hedge funds with bullish positions and the average amount invested in these stocks was $1.18 billion. That figure was $2.45 billion in ESRX’s case. Adobe Systems Incorporated (NASDAQ:ADBE) is the most popular stock in this table. On the other hand Telefonica S.A. (ADR) (NYSE:TEF) is the least popular one with only 5 bullish hedge fund positions. Express Scripts Holding Company (NASDAQ:ESRX) is not the most popular stock in this group but hedge fund interest is still above average, as is the amount of money invested in it. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ADBE might be a better candidate to consider for a long position.

Disclosure: None

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