Is Anadarko Petroleum Corporation (APC) A Good Stock To Buy?

Due to the fact that Anadarko Petroleum Corporation (NYSE:APC) has witnessed a declination in interest from the smart money, it’s easy to see that there was a specific group of funds who sold off their entire stakes in the third quarter. Intriguingly, Matthew Sidman’s Three Bays Capital dropped the largest stake of all the hedgies watched by Insider Monkey, comprising about $384.1 million in stock. Marc Lisker, Glenn Fuhrman and John Phelan’s fund, MSDC Management, also dropped its stock, about $49.3 million worth. These moves are important to note, as aggregate hedge fund interest fell by 5 funds in the third quarter.

Let’s also examine hedge fund activity in other stocks similar to Anadarko Petroleum Corporation (NYSE:APC). These stocks are China Unicom (Hong Kong) Limited (ADR) (NYSE:CHU), Estee Lauder Companies Inc (NYSE:EL), Manulife Financial Corporation (USA) (NYSE:MFC), and Wipro Limited (ADR) (NYSE:WIT). This group of stocks’ market valuations are closest to APC’s market valuation.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $208 million. That figure was $3.38 billion in APC’s case. Estee Lauder Companies Inc (NYSE:EL) is the most popular stock in this table with 27 long positions, while Wipro Limited (ADR) (NYSE:WIT) is the least popular one. Compared to these stocks Anadarko Petroleum Corporation (NYSE:APC) 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.