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Is Caterpillar Inc. (CAT) A Good Stock To Buy?

Consequently, key money managers have jumped into Caterpillar Inc. (NYSE:CAT) headfirst. Jet Capital Investors, managed by Matthew Mark, initiated the most outsized call position in Caterpillar Inc. (NYSE:CAT). Jet Capital Investors had $52.3 million invested in the company at the end of the quarter. Daniel S. Och’s OZ Management also made a $38.9 million investment in the stock during the quarter. The other funds with new positions in the stock are Israel Englander’s Millennium Management, Don Morgan’s Brigade Capital, and Robert Pohly’s Samlyn Capital.

Let’s now take a look at hedge fund activity in other stocks similar to Caterpillar Inc. (NYSE:CAT). We will take a look at Capital One Financial Corp. (NYSE:COF), China Telecom Corporation Limited (ADR) (NYSE:CHA), ABB Ltd (ADR) (NYSE:ABB), and Credit Suisse Group AG (ADR) (NYSE:CS). All of these stocks’ market caps are closest to Caterpillar Inc. (NYSE:CAT)’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
COF 53 1466178 12
CHA 4 6297 -1
ABB 9 163110 -2
CS 7 271645 1

As you can see, these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $477 million. That figure was $1.24 billion in Caterpillar Inc. (NYSE:CAT)’s case. Capital One Financial Corp. (NYSE:COF) is the most popular stock in this table. On the other hand, China Telecom Corporation Limited (ADR) (NYSE:CHA) is the least popular one with only 4 bullish hedge fund positions. Caterpillar Inc. (NYSE:CAT) 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, Capital One Financial Corp. (NYSE:COF) might be a better candidate to consider a long position.

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