Is Alon USA Energy, Inc. (ALJ) A Good Stock To Buy?

As one would reasonably expect, specific money managers have jumped into Alon USA Energy, Inc. (NYSE:ALJ) headfirst. Hutchin Hill Capital, managed by Neil Chriss, established the biggest position in Alon USA Energy, Inc. (NYSE:ALJ). Hutchin Hill Capital had $2.4 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP also made a $2.1 million investment in the stock during the quarter. The following funds were also among the new ALJ investors: Glenn Russell Dubin’s Highbridge Capital Management, Michael Platt and William Reeves’s BlueCrest Capital Mgmt., and Matthew Tewksbury’s Stevens Capital Management.

Let’s also examine hedge fund activity in other stocks similar to Alon USA Energy, Inc. (NYSE:ALJ). These stocks are World Wrestling Entertainment, Inc. (NYSE:WWE), EP Energy Corp (NYSE:EPE), HFF, Inc. (NYSE:HF), and United Community Banks Inc (NASDAQ:UCBI). This group of stocks’ market caps match ALJ’s market cap.

As you can see these stocks had an average of 18.25 hedge funds with bullish positions and the average amount invested in these stocks was $144 million. That figure was $149 million in ALJ’s case. World Wrestling Entertainment, Inc. (NYSE:WWE) is the most popular stock in this table. On the other hand United Community Banks Inc (NASDAQ:UCBI) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks Alon USA Energy, Inc. (NYSE:ALJ) 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.