Hedge Funds Are Crazy About American Electric Power Company Inc (AEP)

As one would reasonably expect, some big names have been driving this bullishness. Two Sigma Advisors, managed by John Overdeck and David Siegel, assembled the most valuable position in American Electric Power Company Inc (NYSE:AEP). The fund reportedly had $10 million invested in the company at the end of the quarter. Steve Cohen’s Point72 Asset Management also initiated a $9 million position during the quarter. The other funds with new positions in the stock are Ken Griffin’s Citadel Investment Group, Sander Gerber’s Hudson Bay Capital Management, and Paul Tudor Jones’s Tudor Investment Corp.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as American Electric Power Company Inc (NYSE:AEP) but similarly valued. We will take a look at Carnival Corporation (NYSE:CCL), Crown Castle International Corp. (NYSE:CCI), Canadian Natural Resource Ltd (USA) (NYSE:CNQ), and Yum! Brands, Inc. (NYSE:YUM). This group of stocks’ market valuations are closest to AEP’s market valuation.

As you can see these stocks had an average of 33 hedge funds with bullish positions and the average amount invested in these stocks was $1.77 billion. That figure was $1.27 billion in AEP’s case. Crown Castle International Corp. (NYSE:CCI) is the most popular stock in this table. On the other hand Canadian Natural Resource Ltd (USA) (NYSE:CNQ) is the least popular one with only 21 bullish hedge fund positions. American Electric Power Company Inc (NYSE:AEP) 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 CCI might be a better candidate to consider a long position.

Disclosure: none.