Is Johnson & Johnson (JNJ) Worthy of Being in Your Portfolio?

In addition, it’s worth mentioning that Jean-Marie Eveillard’s First Eagle Investment Management sold off the largest investment of the 700 funds tracked by Insider Monkey, valued at close to $92.2 million in ‘call’ options., and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund dropped about $84.4 million worth of shares. These moves are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s go over hedge fund activity in other stocks similar to Johnson & Johnson (NYSE:JNJ). We will take a look at Facebook Inc (NASDAQ:FB), General Electric Company (NYSE:GE), AT&T Inc. (NYSE:T), and Wells Fargo & Co (NYSE:WFC). This group of stocks’ market caps resemble JNJ’s market cap.

As you can see these stocks had an average of 90 hedge funds with bullish positions and the average amount invested in these stocks was $12.83 billion. That figure was $5.15 billion in JNJ’s case. Facebook Inc (NASDAQ:FB) is the most popular stock in this table. On the other hand AT&T Inc. (NYSE:T) is the least popular one with only 51 bullish hedge fund positions. Johnson & Johnson (NYSE:JNJ) 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, Facebook might be a better candidate to consider a long position.