Is Ally Financial Inc (ALLY) A Good Stock To Buy?

Consequently, specific money managers have jumped into Ally Financial Inc (NYSE:ALLY) headfirst. Balyasny Asset Management, managed by Dmitry Balyasny, initiated the largest position in Ally Financial Inc (NYSE:ALLY). Balyasny Asset Management had $42.8 million invested in the company at the end of the quarter. Robert Pohly’s Samlyn Capital also made a $40.8 million investment in the stock during the quarter. The other funds with new positions in the stock are Tom Sandell’s Sandell Asset Management, Matthew Hulsizer’s PEAK6 Capital Management, and Benjamin A. Smith’s Laurion Capital Management.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Ally Financial Inc (NYSE:ALLY) but similarly valued. These stocks are CMS Energy Corporation (NYSE:CMS), Coty Inc (NYSE:COTY), Vipshop Holdings Ltd – ADR (NYSE:VIPS), and Waters Corporation (NYSE:WAT). This group of stocks’ market caps are similar to ALLY’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CMS 18 60102 -2
COTY 23 437847 3
VIPS 40 1433192 -14
WAT 28 621264 -2

As you can see these stocks had an average of 27.25 hedge funds with bullish positions and the average amount invested in these stocks was $638 million. That figure was $3532 million in ALLY’s case. Vipshop Holdings Ltd – ADR (NYSE:VIPS) is the most popular stock in this table. On the other hand CMS Energy Corporation (NYSE:CMS) is the least popular one with only 18 bullish hedge fund positions. Compared to these stocks Ally Financial Inc (NYSE:ALLY) 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.