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Is Costco Wholesale Corporation (COST) Going to Burn These Hedge Funds?

Now, specific money managers have jumped into Costco Wholesale Corporation (NASDAQ:COST) headfirst. Highfields Capital Management, led by Jonathon Jacobson, assembled the biggest position in Costco Wholesale Corporation (NASDAQ:COST). Highfields Capital Management had $66.5 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $63.1 million position during the quarter. The other funds with new positions in the stock are Alexander Mitchell’s Scopus Asset Management, Ken Griffin’s Citadel Investment Group, and Gabriel Plotkin’s Melvin Capital Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Costco Wholesale Corporation (NASDAQ:COST) but similarly valued. We will take a look at BHP Billiton plc (ADR) (NYSE:BBL), Simon Property Group, Inc (NYSE:SPG), Colgate-Palmolive Company (NYSE:CL), and Texas Instruments Incorporated (NASDAQ:TXN). This group of stocks’ market values are similar to COST’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BBL 18 323894 -1
SPG 20 893010 -1
CL 38 1877260 2
TXN 37 943996 6

As you can see these stocks had an average of 28 investors with bullish positions and the average amount invested in these stocks was $1.01 billion. That figure was $2.38 billion in COST’s case. Colgate-Palmolive Company (NYSE:CL) is the most popular stock in this table with 38 investors holding shares. On the other hand BHP Billiton plc (ADR) (NYSE:BBL) is the least popular one with only 18 bullish hedge fund positions. Compared to these stocks Costco Wholesale Corporation (NASDAQ:COST) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

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