Is Fortune Brands Home & Security Inc (FBHS) A Good Stock To Buy?

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With general bullishness amongst the heavyweights, key money managers were breaking ground themselves. Two Sigma Advisors created the most valuable position in Fortune Brands Home & Security Inc (NYSE:FBHS). Matthew Tewksbury’s Stevens Capital Management also made an $11.1 million investment in the stock during the quarter. The following funds were also among the new FBHS investors: Andrew Sandler’s Sandler Capital Management, Alec Litowitz and Ross Laser’s Magnetar Capital, and Neil Chriss’ Hutchin Hill Capital.

Let’s now take a look at hedge fund activity in other stocks similar to Fortune Brands Home & Security Inc (NYSE:FBHS). These stocks are CBRE Group Inc (NYSE:CBG), ResMed Inc. (NYSE:RMD), Shaw Communications Inc (USA) (NYSE:SJR), and Cheniere Energy, Inc. (NYSEAMEX:LNG). This group of stocks’ market valuations resemble FBHS’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CBG 34 1890453 6
RMD 17 204914 2
SJR 9 114682 -3
LNG 45 4735418 3

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 $1.74 billion. That figure was $332 million in FBHS’s case. Cheniere Energy, Inc. (NYSEAMEX:LNG) is the most popular stock in this table. On the other hand Shaw Communications Inc (USA) (NYSE:SJR) is the least popular one with only 9 bullish hedge fund positions. Fortune Brands Home & Security Inc (NYSE:FBHS) 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 LNG might be a better candidate to consider a long position.

Disclosure: None

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