CVS Health Corp (CVS): Are Hedge Funds Right About This Stock?

As industrywide interest jumped, key hedge funds were leading the bulls’ herd. Soros Fund Management, managed by George Soros, established the largest call position in CVS Health Corp (NYSE:CVS). Soros Fund Management had $61.4 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $34.9 million investment in the stock during the quarter. The other funds with new positions in the stock are Alexander Mitchell’s Scopus Asset Management, Robert Pohly’s Samlyn Capital, and Ram Seshan Venkateswaran’s Vernier Capital.

Let’s check out hedge fund activity in other stocks similar to CVS Health Corp (NYSE:CVS). These stocks are AbbVie Inc (NYSE:ABBV), Schlumberger Limited. (NYSE:SLB), Nippon Telegraph & Telephone Corp (ADR) (NYSE:NTT), and Mastercard Inc (NYSE:MA). This group of stocks’ market caps are closest to CVS’s market cap.

As you can see these stocks had an average of 52 hedge funds with bullish positions and the average amount invested in these stocks was $3.35 billion. That figure was $2.0 billion in CVS’s case. Mastercard Inc (NYSE:MA) is the most popular stock in this table. On the other hand Nippon Telegraph & Telephone Corp (ADR) (NYSE:NTT) is the least popular one with only 10 bullish hedge fund positions. CVS Health Corp (NYSE:CVS) 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 MA might be a better candidate to consider a long position.