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Is Arthur J. Gallagher & Co. (AJG) A Good Stock To Buy?

Now, key hedge funds were leading the bulls’ herd. Blue Arrow Capital Management, managed by Millennium Management Subsidiary, created the most valuable position in Arthur J. Gallagher & Co. (NYSE:AJG). Blue Arrow Capital Management had $9.5 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also made a $5.7 million investment in the stock during the quarter. The following funds were also among the new AJG investors: Joel Greenblatt’s Gotham Asset Management, Matthew Tewksbury’s Stevens Capital Management, and Ray Dalio’s Bridgewater Associates.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Arthur J. Gallagher & Co. (NYSE:AJG) but similarly valued. We will take a look at Synopsys, Inc. (NASDAQ:SNPS), Mobile TeleSystems OJSC (ADR) (NYSE:MBT), China Southern Airlines Co Ltd (ADR) (NYSE:ZNH), and ResMed Inc. (NYSE:RMD). This group of stocks’ market values match AJG’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SNPS 21 279842 2
MBT 13 112232 1
ZNH 4 22919 0
RMD 16 155642 -2

As you can see these stocks had an average of 13.5 hedge funds with bullish positions and the average amount invested in these stocks was $143 million. That figure was $201 million in AJG’s case. Synopsys, Inc. (NASDAQ:SNPS) is the most popular stock in this table. On the other hand China Southern Airlines Co Ltd (ADR) (NYSE:ZNH) is the least popular one with only 4 bullish hedge fund positions. Arthur J. Gallagher & Co. (NYSE:AJG) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal making AJG worth a closer look.

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