Is Encana Corp (USA) (ECA) A Good Stock To Buy?

With a general bullishness among the heavyweights, specific money managers have been driving this bullishness. Elliott Management, managed by Paul Singer, created the most outsized position in Encana Corp (USA) (NYSE:ECA). The fund had $127 million invested in the company at the end of the quarter. Jorge Paulo Lemann’s 3G Capital also made a $62.8 million investment in the stock during the quarter. The other funds with brand new ECA positions are Anand Parekh’s Alyeska Investment Group, Rob Citrone’s Discovery Capital Management, and Steve Cohen’s Point72 Asset Management.

Let’s now review hedge fund activity in other stocks similar to Encana Corp (USA) (NYSE:ECA). We will take a look at DexCom, Inc. (NASDAQ:DXCM), New Oriental Education & Tech Grp (ADR) (NYSE:EDU), Hyatt Hotels Corporation (NYSE:H), and FactSet Research Systems Inc. (NYSE:FDS). All of these stocks’ market caps are closest to ECA’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
DXCM 26 300295 1
EDU 20 288666 0
H 23 293258 5
FDS 16 280411 1

As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $291 million. That figure was $2.16 billion in ECA’s case. DexCom, Inc. (NASDAQ:DXCM) is the most popular stock in this table. On the other hand FactSet Research Systems Inc. (NYSE:FDS) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks Encana Corp (USA) (NYSE:ECA) 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.

Disclosure: none.