Is ACE Limited (ACE) Going to Burn These Hedge Funds?

Consequently, key hedge funds were breaking ground themselves. Viking Global initiated the largest position in ACE Limited (NYSE:ACE). Viking Global had $118 million invested in the company at the end of the quarter. Rob Citrone’s Discovery Capital Management also initiated a $100.3 million position during the quarter. The other funds with new positions in the stock are Joe DiMenna’s ZWEIG DIMENNA PARTNERS, Steve Cohen’s Point72 Asset Management, and Ron Bobman’s Capital Returns Management.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as ACE Limited (NYSE:ACE) but similarly valued. These stocks are Luxottica Group SpA (ADR) (NYSE:LUX), VMware, Inc. (NYSE:VMW), Raytheon Company (NYSE:RTN), and Twenty-First Century Fox Inc (NASDAQ:FOXA). This group of stocks’ market values are similar to ACE’s market value.

As you can see these stocks had an average of 32 hedge funds with bullish positions and the average amount invested in these stocks was $1.48 billion. That figure was $1.27 billion in ACE’s case. Twenty-First Century Fox Inc (NASDAQ:FOXA) is the most popular stock in this table, while Luxottica Group SpA (ADR) (NYSE:LUX) is the least popular one with only 5 bullish hedge fund positions. ACE Limited (NYSE:ACE) 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 FOXA might be a better candidate to consider a long position.