Is Colgate-Palmolive Company (CL) a Good Buy?

Judging by the fact that Colgate-Palmolive Company (NYSE:CL) has witnessed a declination in interest from the smart money, logic holds that there was a specific group of hedgies who sold off their full holdings by the end of the third quarter. Interestingly, Mark Kingdon’s Kingdon Capital cut the biggest investment of all the hedgies watched by Insider Monkey, comprising about $13.1 million in stock, and Matthew Tewksbury’s Stevens Capital Management was right behind this move, as the fund dropped about $6.9 million worth. These transactions are interesting, as aggregate hedge fund interest dropped by 4 funds by the end of the third quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Colgate-Palmolive Company (NYSE:CL) but similarly valued. These stocks are Simon Property Group, Inc (NYSE:SPG), Time Warner Inc (NYSE:TWX), Telefonica S.A. (ADR) (NYSE:TEF), and America Movil SAB de CV (ADR) (NYSE:AMX). This group of stocks’ market valuations match CL’s market valuation.

As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $1,434 million. That figure was $1,803 million in CL’s case. Time Warner Inc (NYSE:TWX) is the most popular stock in this table. On the other hand Telefonica S.A. (ADR) (NYSE:TEF) is the least popular one with only 5 bullish hedge fund positions. Colgate-Palmolive Company (NYSE:CL) 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 TWX might be a better candidate to consider a long position.