Is Celgene Corporation (CELG) A Good Stock To Buy?

With a general bullishness amongst the heavyweights, key money managers were breaking ground themselves. ZWEIG DIMENNA PARTNERS, managed by Joe DiMenna, established the biggest position in Celgene Corporation (NASDAQ:CELG). ZWEIG DIMENNA PARTNERS had $42.6 million invested in the company at the end of the quarter. John Burbank’s Passport Capital also made a $18.9 million investment in the stock during the quarter. The other funds with brand new CELG positions are Clifford Fox’s Columbus Circle Investors, Ken Greenberg and David Kim’s Ghost Tree Capital, and Charles Davidson’s Wexford Capital.

Let’s check out hedge fund activity in other stocks similar to Celgene Corporation (NASDAQ:CELG). These stocks are Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU), QUALCOMM, Inc. (NASDAQ:QCOM), Starbucks Corporation (NASDAQ:SBUX), and Vodafone Group Plc (ADR) (NASDAQ:VOD). This group of stocks’ market valuations is closest to Celgene Corporation (NASDAQ:CELG)’s market valuation.

As you can see, these stocks had an average of 40 hedge funds with bullish positions and the average amount invested in these stocks was $2.18 billion. That figure was $2.06 billion in Celgene Corporation (NASDAQ:CELG)’s case. QUALCOMM, Inc. (NASDAQ:QCOM) is the most popular stock in this table. On the other hand, Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU) is the least popular one with only 12 bullish hedge fund positions. Celgene Corporation (NASDAQ:CELG) 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, QUALCOMM, Inc. (NASDAQ:QCOM) might be a better candidate to consider a long position.