Is Baker Hughes Incorporated (BHI) A Good Stock To Buy?

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Seeing as Baker Hughes Incorporated (NYSE:BHI) has faced falling interest from the smart money, logic holds that there is a sect of fund managers who sold off their full holdings between July and September. Intriguingly, Rob Citrone’s Discovery Capital Management cut the largest investment of all the hedgies followed by Insider Monkey, comprising about $55.5 million in stock, and Till Bechtolsheimer’s Arosa Capital Management was right behind this move, as the fund dumped about $50 million worth of shares.

Let’s now review hedge fund activity in other stocks similar to Baker Hughes Incorporated (NYSE:BHI). These stocks are Energy Transfer Partners LP (NYSE:ETP), Ecopetrol S.A. (ADR) (NYSE:EC), Sirius XM Holdings Inc (NASDAQ:SIRI), and The Progressive Corporation (NYSE:PGR). This group of stocks’ market valuations are similar to BHI’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ETP 22 956722 0
EC 8 58450 0
SIRI 27 894484 5
PGR 29 914281 -1

As you can see these stocks had an average of 22 investors with bullish positions and the average amount invested in these stocks was $706 million at the end of September. By comparison, the 42 funds bullish on BHI amassed $2.64 billion worth of its shares. The Progressive Corporation (NYSE:PGR) is the most popular stock in this table, while Ecopetrol S.A. (ADR) (NYSE:EC) is the least popular one with only eight bullish hedge fund positions. Compared to these stocks, Baker Hughes Incorporated (NYSE:BHI) 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.

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