CBS Corporation (CBS): Are Hedge Funds Right About This Stock?

Page 3 of 3

How are hedge funds trading CBS Corporation (NYSE:CBS)?

At Q4’s end, a total of 64 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 3% from the third quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).

Of the funds tracked by Insider Monkey, Jonathon Jacobson’s Highfields Capital Management has the biggest position in CBS Corporation (NYSE:CBS), worth close to $513 million, corresponding to 4.4% of its total 13F portfolio. On Highfields Capital Management’s heels is Larry Robbins’ Glenview Capital, with a $408 million position; 2.3% of its 13F portfolio is allocated to the company. Other members of the smart money with similar optimism comprise John Shapiro’s Chieftain Capital, Ken Griffin’s Citadel Investment Group and Philippe Laffont’s Coatue Management.

With a general bullishness amongst the heavyweights, key hedge funds were leading the bulls’ herd. Balyasny Asset Management, managed by Dmitry Balyasny, assembled the most valuable position in CBS Corporation (NYSE:CBS). Balyasny Asset Management had $129.6 million invested in the company at the end of the quarter. Brett Barakett’s Tremblant Capital also made a $59.1 million investment in the stock during the quarter. The following funds were also among the new CBS investors: Clint Carlson’s Carlson Capital, Solomon Kumin’s Folger Hill Asset Management, and Alexander Mitchell’s Scopus Asset Management.

Let’s also examine hedge fund activity in other stocks similar to CBS Corporation (NYSE:CBS). We will take a look at Franklin Resources, Inc. (NYSE:BEN), Archer Daniels Midland Company (NYSE:ADM), SunTrust Banks, Inc. (NYSE:STI), and Ross Stores, Inc. (NASDAQ:ROST). This group of stocks’ market caps are closest to CBS’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BEN 33 1695823 -4
ADM 27 867293 -6
STI 36 608575 -9
ROST 33 651170 -7

As you can see these stocks had an average of 32 hedge funds with bullish positions and the average amount invested in these stocks was $956 million, which is considerably lower compared to the $3.38 billion in CBS’s case. SunTrust Banks, Inc. (NYSE:STI) is the most popular stock in this table. On the other hand, Archer Daniels Midland Company (NYSE:ADM) is the least popular one with only 27 bullish hedge fund positions. Compared to these stocks CBS Corporation (NYSE:CBS) 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.

Page 3 of 3