Do Hedge Funds Love CME Group Inc (CME)?

Does CME Group Inc (NASDAQ:CME) represent a good buying opportunity at the moment? Let’s briefly check the hedge fund sentiment towards the company. Hedge fund firms constantly search out bright intellectuals and highly-experienced employees and throw away millions of dollars on research activities, so it is no wonder why they tend to generate millions in profits each year. It is also true that some hedge fund players fail unconceivably on some occasions, but their stock picks have been generating superior risk-adjusted returns on average over the years.

CME Group Inc (NASDAQ:CME) was in 48 hedge funds’ portfolios at the end of the third quarter of 2016. CME has seen a decrease in hedge fund interest lately. There were 49 hedge funds in our database with CME holdings at the end of the previous quarter. At the end of this article we will also compare CME to other stocks including CIGNA Corporation (NYSE:CI), Brookfield Asset Management Inc. (USA) (NYSE:BAM), and Monster Beverage Corp (NASDAQ:MNST) to get a better sense of its popularity.

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With all of this in mind, let’s take a glance at the fresh action regarding CME Group Inc (NASDAQ:CME).

What does the smart money think about CME Group Inc (NASDAQ:CME)?

At the end of the third quarter, a total of 48 of the hedge funds tracked by Insider Monkey were long this stock, a change of -2% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their stakes meaningfully (or already accumulated large positions).

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When looking at the institutional investors followed by Insider Monkey, William von Mueffling’s Cantillon Capital Management has the number one position in CME Group Inc (NASDAQ:CME), worth close to $268.5 million, amounting to 3.8% of its total 13F portfolio. Coming in second is Panayotis Takis Sparaggis of Alkeon Capital Management, with a $133.3 million position; the fund has 2.5% of its 13F portfolio invested in the stock. Remaining members of the smart money with similar optimism contain D. E. Shaw’s D E Shaw, Christopher James’ Partner Fund Management and Phill Gross and Robert Atchinson’s Adage Capital Management.