Is BlackRock, Inc. (BLK) A Good Stock To Buy?

As one would reasonably expect, some big names have jumped into BlackRock, Inc. (NYSE:BLK) headfirst. Citadel Investment Group, managed by Ken Griffin, established the most outsized position in BlackRock, Inc. (NYSE:BLK). The fund reportedly had $30 million invested in the company at the end of the quarter. Nick Niell’s Arrowgrass Capital Partners also made a $14.1 million investment in the stock during the quarter. The other funds with new positions in the stock are David Harding’s Winton Capital Management, Ken Griffin’s Citadel Investment Group, and Israel Englander’s Millennium Management.

Let’s go over hedge fund activity in other stocks similar to BlackRock, Inc. (NYSE:BLK). These stocks are The Dow Chemical Company (NYSE:DOW), HDFC Bank Limited (ADR) (NYSE:HDB), BT Group plc (ADR) (NYSE:BT), and Statoil ASA (ADR) (NYSE:STO). This group of stocks’ market values resemble BLK’s market value.

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $1.08 billion. That figure was a meager $397 million in BLK’s case. The Dow Chemical Company (NYSE:DOW) is the most popular stock in this table. On the other hand BT Group plc (ADR) (NYSE:BT) is the least popular one with only 7 bullish hedge fund positions. BlackRock, Inc. (NYSE:BLK) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard DOW might be a better candidate to consider a long position.

Disclosure: none.