Is Blackstone Group LP (BX) A Good Stock To Buy?

Seeing as Blackstone Group LP (NYSE:BX) has witnessed no change in interest from the entirety of the hedge funds we track, we must take a look at a select few money managers that slashed their positions entirely last quarter. At the top of the heap, Howard Marks’s Oaktree Capital Management cut the largest position of the 700 funds monitored by Insider Monkey, valued at close to $12.9 million in call options, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund said goodbye to about $7.4 million worth of options. These moves are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Blackstone Group LP (NYSE:BX) but similarly valued. These stocks are Activision Blizzard, Inc. (NASDAQ:ATVI), Aon PLC (NYSE:AON), Johnson Controls, Inc. (NYSE:JCI), and SYSCO Corporation (NYSE:SYY). This group of stocks’ market values match BX’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ATVI 64 4243407 -4
AON 31 2565907 0
JCI 55 2833460 23
SYY 33 3556925 2

As you can see these stocks had an average of 46 hedge funds with bullish positions and the average amount invested in these stocks was $3.3 billion. That figure was a minor $404 million in BX’s case. Activision Blizzard, Inc. (NASDAQ:ATVI) is the most popular stock in this table. On the other hand Aon PLC (NYSE:AON) is the least popular one with only 31 bullish hedge fund positions. Blackstone Group LP (NYSE:BX) 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 ATVI might be a better candidate to consider a long position.

Disclosure: none.