Is GlaxoSmithKline plc (ADR) (GSK) A Good Stock To Buy?

With a general bullishness amongst the heavyweights, specific money managers have jumped into GlaxoSmithKline plc (ADR) (NYSE:GSK) headfirst. Adage Capital Management, managed by Phill Gross and Robert Atchinson, assembled the most outsized position in GlaxoSmithKline plc (ADR) (NYSE:GSK). Adage Capital Management had $50 million invested in the company at the end of the quarter. Sanford J. Colen’s Apex Capital also made a $21.1 million investment in the stock during the quarter. The other funds with brand new GSK positions are Steven Boyd’s Armistice Capital, Glenn Russell Dubin’s Highbridge Capital Management, and Paul Marshall and Ian Wace’s Marshall Wace LLP.

Let’s now take a look at the hedge fund activity in other stocks – not necessarily in the same industry as GlaxoSmithKline plc (ADR) (NYSE:GSK) but similarly valued. We will take a look at NIKE, Inc. (NYSE:NKE), Lloyds Banking Group PLC (ADR) (NYSE:LYG), BHP Billiton plc (ADR) (NYSE:BBL), and AstraZeneca plc (ADR) (NYSE:AZN). All of these stocks’ market caps are closest to GlaxoSmithKline plc (ADR) (NYSE:GSK)’s market cap.

As you can see, these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $1.34 billion. That figure was $1.02 billion in GlaxoSmithKline plc (ADR) (NYSE:GSK)’s case. NIKE, Inc. (NYSE:NKE) is the most popular stock in this table. On the other hand, BHP Billiton plc (ADR) (NYSE:BBL) is the least popular one with only 4 bullish hedge fund positions. GlaxoSmithKline plc (ADR) (NYSE:GSK) 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 NIKE, Inc. (NYSE:NKE) might be a better candidate to consider a long position.