Is Ameriprise Financial, Inc. (AMP) A Good Stock To Buy?

Because Ameriprise Financial, Inc. (NYSE:AMP) has experienced declining sentiment from hedge fund managers, it’s easy to see that there lies a certain “tier” of hedgies that elected to cut their full holdings by the end of the third quarter. It’s worth mentioning that Louis Bacon’s Moore Global Investments sold off the largest stake of the “upper crust” of funds monitored by Insider Monkey, worth close to $10.8 million in call options. Ken Griffin’s fund, Citadel Investment Group, also cut its call options position, about $2.5 million worth of. These moves are intriguing to say the least, as total hedge fund interest fell by 3 funds by the end of the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Ameriprise Financial, Inc. (NYSE:AMP) but similarly valued. We will take a look at FirstEnergy Corp. (NYSE:FE), NetEase, Inc (ADR) (NASDAQ:NTES), Workday Inc (NYSE:WDAY), and Credicorp Ltd. (USA) (NYSE:BAP). This group of stocks’ market values are closest to AMP’s market value.

As you can see these stocks had an average of 30 hedge funds with bullish positions and the average amount invested in these stocks was $1.54 billion. That figure was a meager $284 million in AMP’s case. NetEase, Inc (ADR) (NASDAQ:NTES) is the most popular stock in this table. On the other hand Credicorp Ltd. (USA) (NYSE:BAP) is the least popular one with only 22 bullish hedge fund positions. Ameriprise Financial, Inc. (NYSE:AMP) 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 NTES might be a better candidate to consider a long position.

Disclosure: none.