Is Bunge Ltd (BG) A Good Stock To Buy According To Hedge Funds?

Seeing as Bunge Ltd (NYSE:BG) has faced falling interest from hedge fund managers, logic holds that there was a specific group of money managers that elected to cut their positions entirely last quarter. At the top of the heap, Anand Parekh’s Alyeska Investment Group cut the largest stake of the 700 funds watched by Insider Monkey, comprising about $17.8 million in stock. Joel Greenblatt’s fund, Gotham Asset Management, also dumped its stock, about $13.8 million worth of BG shares. These bearish behaviors are intriguing to say the least, as total hedge fund interest was cut by 10 funds last quarter.

Let’s go over hedge fund activity in other stocks similar to Bunge Ltd (NYSE:BG). We will take a look at Mobile TeleSystems OJSC (ADR) (NYSE:MBT), The AES Corporation (NYSE:AES), Synopsys, Inc. (NASDAQ:SNPS), and Harley-Davidson, Inc. (NYSE:HOG). This group of stocks’ market valuations match BG’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MBT 17 183462 0
AES 22 107548 3
SNPS 22 417138 1
HOG 26 521854 6

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 $308 million. That figure was $783 million in BG’s case. Harley-Davidson, Inc. (NYSE:HOG) is the most popular stock in this table. On the other hand Mobile TeleSystems OJSC (ADR) (NYSE:MBT) is the least popular one with only 17 bullish hedge fund positions. Bunge Ltd (NYSE:BG) 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 HOG might be a better candidate to consider a long position.

Disclosure: none.