Is AGCO Corporation (AGCO) a Good Stock to Invest in?

With a general bullishness amongst the heavyweights, key money managers have jumped into AGCO Corporation (NYSE:AGCO) headfirst. Jim Simons’ Renaissance Technologies created the most outsized position in AGCO Corporation (NYSE:AGCO). Renaissance Technologies had $6.3 million invested in the company at the end of the quarter. David E. Shaw’s D E Shaw also initiated a $3.1 million position during the quarter. The other funds with brand new AGCO positions are Mike Vranos’ Ellington, Ken Griffin’s Citadel Investment Group, and Paul Tudor Jones’ Tudor Investment Corp.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as AGCO Corporation (NYSE:AGCO) but similarly valued. We will take a look at Gramercy Property Trust Inc (NYSE:GPT), Elbit Systems Ltd. (USA) (NASDAQ:ESLT), NuStar Energy L.P. (NYSE:NS), and Flowers Foods, Inc. (NYSE:FLO). This group of stocks’ market valuations are closest to AGCO’s market valuation.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $117 million, which compares to $577 million in AGCO’s case. Flowers Foods, Inc. (NYSE:FLO) is the most popular stock in this table, while Elbit Systems Ltd. (USA) (NASDAQ:ESLT) is the least popular one with only five investors holding long positions. Compared to these stocks AGCO Corporation (NYSE:AGCO) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None