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Here is What Hedge Funds Think About Berkshire Hathaway Inc. (BRK.B)

Because Berkshire Hathaway Inc. (NYSE:BRK.B) has witnessed falling interest from the aggregate hedge fund industry, logic holds that there lies a certain “tier” of fund managers that elected to cut their full holdings by the end of the third quarter. Interestingly, First Eagle Investment Management dumped the largest position of the 700 funds monitored by Insider Monkey, worth about $329.4 million in call options.. Ken Griffin’s fund, Citadel Investment Group, also sold off its call options., about $46.3 million worth.

Let’s now take a look at hedge fund activity in other stocks similar to Berkshire Hathaway Inc. (NYSE:BRK.B). These stocks are Amazon.com, Inc. (NASDAQ:AMZN), Johnson & Johnson (NYSE:JNJ), Facebook Inc (NASDAQ:FB), and General Electric Company (NYSE:GE). This group of stocks’ market valuations match BRK-B’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AMZN 150 20794328 5
JNJ 82 5146011 0
FB 149 16275572 1
GE 55 5080463 -2

As you can see these stocks had an average of 109 investors with bullish positions and the average amount invested in these stocks was $11.82 billion. That figure was $20.32 billion in BRK-B’s case. Amazon.com, Inc. (NASDAQ:AMZN) is the most popular stock in this table. On the other hand, General Electric Company (NYSE:GE) is the least popular one with only 55 investors holding shares. Berkshire Hathaway Inc. (NYSE:BRK.B) 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 Amazon.com, Inc. (NASDAQ:AMZN) might be a better candidate to consider a long position.

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