American Capital Agency Corp. (AGNC): Are Hedge Funds Right About This Stock?

As aggregate interest increased, specific money managers have jumped into American Capital Agency Corp. (NASDAQ:AGNC) headfirst. Soros Fund Management, managed by George Soros, established the largest position in American Capital Agency Corp. (NASDAQ:AGNC). Soros Fund Management had $21 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also made a $18.7 million investment in the stock during the quarter. The other funds with brand new AGNC positions are Dmitry Balyasny’s Balyasny Asset Management, Benjamin A. Smith’s Laurion Capital Management, and Richard Driehaus’s Driehaus Capital.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as American Capital Agency Corp. (NASDAQ:AGNC) but similarly valued. We will take a look at Centene Corp (NYSE:CNC), Jones Lang LaSalle Inc (NYSE:JLL), Omega Healthcare Investors Inc (NYSE:OHI), and Camden Property Trust (NYSE:CPT). This group of stocks’ market caps resemble AGNC’s market cap.

As you can see these stocks had an average of 23.5 hedge funds with bullish positions and the average amount invested in these stocks was $339 million. That figure was $473 million in AGNC’s case. Centene Corp (NYSE:CNC) is the most popular stock in this table. On the other hand Omega Healthcare Investors Inc (NYSE:OHI) is the least popular one with only 14 bullish hedge fund positions. American Capital Agency Corp. (NASDAQ:AGNC) 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 CNC might be a better candidate to consider a long position.