Does Procter & Gamble Co (PG) Represent a Good Addition to Your Portfolio?

Now, specific money managers were leading the bulls’ herd. OZ Management, managed by Daniel S. Och, initiated the biggest call position in Procter & Gamble Co (NYSE:PG). O Matthew Halbower’s Pentwater Capital Management also made a $1.72 billion investment in the stock during the third quarter. The other funds with new positions in the stock are Benjamin A. Smith’s Laurion Capital Management and Brian Taylor’s Pine River Capital Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Procter & Gamble Co (NYSE:PG) but similarly valued. We will take a look at Pfizer Inc. (NYSE:PFE), Anheuser-Busch InBev NV (ADR) (NYSE:BUD), Royal Dutch Shell plc (ADR) (NYSE:RDS), and Chevron Corporation (NYSE:CVX). This group of stocks’ market valuations match PG’s market valuation.

As you can see these stocks had an average of 51 investors with bullish positions at the end of September and the average amount invested in these stocks was $3.64 billion. By comparison, the 71 funds bullish on PG amassed $20.10 billion worth of shares heading into the fourth quarter. Pfizer Inc. (NYSE:PFE) is the most popular stock in this table with 83 funds holding shares. On the other hand Anheuser-Busch InBev NV (ADR) (NYSE:BUD) is the least popular one with only 32 bullish hedge fund positions. The Procter & Gamble Company (NYSE:PG) 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 Pfizer Inc. (NYSE:PFE) might be a better candidate to consider a long position.