Do Hedge Funds Love Cincinnati Financial Corporation (CINF)?

As industrywide interest jumped, specific money managers were breaking ground themselves. Alec Litowitz and Ross Laser’s Magnetar Capital assembled the most valuable position in Cincinnati Financial Corporation (NASDAQ:CINF). Magnetar Capital had $0.7 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $0.5 million investment in the stock during the quarter. The other funds with new positions in the stock are John Overdeck and David Siegel’s Two Sigma Advisors, Sander Gerber’s Hudson Bay Capital Management, and Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital.

Let’s now review hedge fund activity in other stocks similar to Cincinnati Financial Corporation (NASDAQ:CINF). We will take a look at Ultrapar Participacoes SA (ADR) (NYSE:UGP), Martin Marietta Materials, Inc. (NYSE:MLM), Alcoa Inc (NYSE:AA), and Centene Corp (NYSE:CNC). All of these stocks’ market caps match CINF’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
UGP 10 87119 3
MLM 35 1223233 -2
AA 34 2328194 -4
CNC 22 333094 -10

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $993 million. That figure was $121 million in CINF’s case. Martin Marietta Materials, Inc. (NYSE:MLM) is the most popular stock in this table. On the other hand Ultrapar Participacoes SA (ADR) (NYSE:UGP) is the least popular one with only 10 bullish hedge fund positions. Cincinnati Financial Corporation (NASDAQ:CINF) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard MLM might be a better candidate to consider taking a long position in.

Disclosure: None