Is First Niagara Financial Group Inc. (FNFG) A Good Stock To Buy?

Now, key money managers were leading the bulls’ herd. Water Island Capital established the most valuable position in First Niagara Financial Group Inc. (NASDAQ:FNFG). Water Island Capital had $9.9 million invested in the company at the end of the quarter. Emanuel J. Friedman’s EJF Capital also initiated an $8.2 million position during the quarter. The following funds were also among the new First Niagara Financial Group Inc. (NASDAQ:FNFG) investors: Glenn Russell Dubin’s Highbridge Capital Management, George Hall’s Clinton Group, and Mike Vranos’ Ellington.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as First Niagara Financial Group Inc. (NASDAQ:FNFG) but similarly valued. These stocks are NetScout Systems, Inc. (NASDAQ:NTCT), CNO Financial Group Inc (NYSE:CNO), Qunar Cayman Islands Ltd (NASDAQ:QUNR), and Berry Plastics Group Inc (NYSE:BERY). This group of stocks’ market valuations matches First Niagara Financial Group Inc. (NASDAQ:FNFG)’s market valuation.

As you can see, these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $679 million. That figure was $168 million in First Niagara Financial Group Inc. (NASDAQ:FNFG)’s case. Berry Plastics Group Inc (NYSE:BERY) is the most popular stock in this table. On the other hand, CNO Financial Group Inc (NYSE:CNO) is the least popular one with only 8 bullish hedge fund positions. First Niagara Financial Group Inc. (NASDAQ:FNFG) 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, Berry Plastics Group Inc (NYSE:BERY) might be a better candidate to consider a long position.