Hedge Funds Are Buying CF Industries Holdings, Inc. (CF)

As industrywide interest jumped, specific money managers were leading the bulls’ herd. Iridian Asset Management, led by David Cohen and Harold Levy, created the biggest position in CF Industries Holdings, Inc. (NYSE:CF). Iridian Asset Management had $110.3 million invested in the company at the end of the quarter. Kevin D. Eng’s Columbus Hill Capital Management also initiated a $39.2 million position during the quarter. The following funds were also among the new CF investors: John Osterweis’s Osterweis Capital Management, Steve Cohen’s Point72 Asset Management, and Steve Pei’s Gratia Capital.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as CF Industries Holdings, Inc. (NYSE:CF) but similarly valued. We will take a look at Vail Resorts, Inc. (NYSE:MTN), VCA Antech Inc (NASDAQ:WOOF), Signet Jewelers Ltd. (NYSE:SIG), and Veeva Systems Inc (NYSE:VEEV). This group of stocks’ market values are similar to CF’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MTN 35 497137 2
WOOF 34 478539 4
SIG 39 2132429 -5
VEEV 23 254286 2

As you can see these stocks had an average of 32.75 hedge funds with bullish positions and the average amount invested in these stocks was $841 million. That figure was $1022 million in CF’s case. Signet Jewelers Ltd. (NYSE:SIG) is the most popular stock in this table. On the other hand Veeva Systems Inc (NYSE:VEEV) is the least popular one with only 23 bullish hedge fund positions. CF Industries Holdings, Inc. (NYSE:CF) 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 SIG might be a better candidate to consider taking a long position in.

Disclosure: None