Is Ingredion Inc (INGR) Going to Burn These Hedge Funds?

Now, specific money managers have been driving this bullishness. Balyasny Asset Management initiated the most outsized position in Ingredion Inc (NYSE:INGR). According to its latest 13F filing, the fund had $14.5 million invested in the company at the end of the quarter. Millennium Management also initiated a $10 million position during the quarter. The other funds with new positions in the stock are Jim Simons’ Renaissance Technologies, David E. Shaw’s D E Shaw, and George Hall’s Clinton Group.

Let’s now take a look at hedge fund activity in other stocks similar to Ingredion Inc (NYSE:INGR). We will take a look at KeyCorp (NYSE:KEY), Interpublic Group of Companies Inc (NYSE:IPG), Lincoln National Corporation (NYSE:LNC), and Wynn Resorts, Limited (NASDAQ:WYNN). This group of stocks’ market values are similar to INGR’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
KEY 42 727656 -4
IPG 31 1267574 -4
LNC 24 668282 0
WYNN 38 2245380 8

As you can see these stocks had an average of 34 hedge funds with bullish positions and the average amount invested in these stocks was $1.23 billion. That figure was $407 million in INGR’s case. KeyCorp (NYSE:KEY) is the most popular stock in this table. On the other hand Lincoln National Corporation (NYSE:LNC) is the least popular one with only 24 bullish hedge fund positions. Compared to these stocks Ingredion Inc (NYSE:INGR) is even less popular than LNC. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None