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Is Chubb Ltd (CB) a Good Stock to Buy?

Seeing as Chubb Ltd (NYSE:CB) has experienced declining sentiment from the entirety of the hedge funds we track, logic holds that there lies a certain “tier” of fund managers that decided to sell off their positions entirely by the end of the third quarter. At the top of the heap, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital dumped the largest stake of all the hedgies monitored by Insider Monkey, worth about $11.3 million in stock. Charles Davidson’s fund, Wexford Capital, also said goodbye to its stock, about $9.9 million worth.

Let’s now take a look at hedge fund activity in other stocks similar to Chubb Ltd (NYSE:CB). We will take a look at NextEra Energy, Inc. (NYSE:NEE), American International Group Inc (NYSE:AIG), Duke Energy Corp (NYSE:DUK), and The Bank of Nova Scotia (USA) (NYSE:BNS). All of these stocks’ market caps are closest to CB’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NEE 35 997374 3
AIG 82 6994716 -3
DUK 19 640205 1
BNS 14 272621 -1

As you can see these stocks had an average of 38 investors with bullish positions and the average amount invested in these stocks was $2.23 billion. That figure was $1.28 billion in CB’s case. With 82 funds holding long positions, American International Group Inc (NYSE:AIG) is the most popular stock in this table. On the other hand The Bank of Nova Scotia (USA) (NYSE:BNS) is the least popular one with only 14 bullish hedge fund positions. The Chubb Corporation (NYSE:CB) 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, American International Group Inc (NYSE:AIG) might be a better candidate to consider a long position.

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