Is Hanesbrands Inc. (HBI) A Good Stock To Buy?

Since Hanesbrands Inc. (NYSE:HBI) has weathered a decline in interest from the aggregate hedge fund industry, we can see that there is a sect of hedge funds that slashed their entire stakes heading into Q4. Intriguingly, Paul Marshall and Ian Wace’s Marshall Wace LLP sold off the biggest position of the 700 funds monitored by Insider Monkey, worth an estimated $7.2 million in stock. Robert Bishop’s fund, Impala Asset Management, also dropped its stock, about $3.7 million worth.

Let’s now review hedge fund activity in other stocks similar to Hanesbrands Inc. (NYSE:HBI). These stocks are Liberty Interactive Corp (NASDAQ:QVCA), Shaw Communications Inc (USA) (NYSE:SJR), Tesoro Corporation (NYSE:TSO), and Autoliv Inc. (NYSE:ALV). This group of stocks’ market valuations resemble HBI’s market valuation.

As you can see these stocks had an average of 35 hedge funds with bullish positions and the average amount invested in these stocks was $1.23 billion. That figure was $1.02 billion in HBI’s case. Liberty Interactive Corp (NASDAQ:QVCA) 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. Hanesbrands Inc. (NYSE:HBI) 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 QVCA might be a better candidate to consider taking a long position in.

Disclosure: None