Hedge Funds Are Betting On Canadian Pacific Railway Limited (USA) (CP)

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As industrywide interest jumped, key hedge funds were breaking ground themselves. Egerton Capital Limited, assembled the most valuable position in Canadian Pacific Railway Limited (USA) (NYSE:CP). Balyasny Asset Management also made a $159.7 million investment in the stock during the quarter. The other funds with brand new CP positions are Alexander Mitchell’s Scopus Asset Management, Daniel S. Och’s OZ Management, and Benjamin A. Smith’s Laurion Capital Management.

Let’s now review hedge fund activity in other stocks similar to Canadian Pacific Railway Limited (USA) (NYSE:CP). We will take a look at Hormel Foods Corporation (NYSE:HRL), Omnicom Group Inc. (NYSE:OMC), L Brands Inc (NYSE:LB), and JD.Com Inc (ADR) (NASDAQ:JD). This group of stocks’ market values resemble CP’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
HRL 27 706735 -2
OMC 21 732697 -3
LB 32 1319885 3
JD 44 7410928 -7

As you can see these stocks had an average of 31 hedge funds with bullish positions and the average amount invested in these stocks was $2.54 billion. That figure was $2.23 billion in CP’s case. JD.Com Inc (ADR) (NASDAQ:JD) is the most popular stock in this table. On the other hand Omnicom Group Inc. (NYSE:OMC) is the least popular one with only 21 bullish hedge fund positions. Canadian Pacific Railway Limited (USA) (NYSE:CP) 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 JD might be a better candidate to consider a long position.

Disclosure: None

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