Is Monster Beverage Corp (MNST) a Good Stock To Buy?

Interestingly, Joel Greenblatt’s Gotham Asset Management sold off the largest position of all the hedgies monitored by Insider Monkey, worth about $35.5 million in stock. Malcolm Fairbairn’s fund, Ascend Capital, also dropped its stock, about $6.7 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s now review hedge fund activity in other stocks similar to Monster Beverage Corp (NASDAQ:MNST). These stocks are Marsh & McLennan Companies, Inc. (NYSE:MMC), Williams Companies, Inc. (NYSE:WMB), WPP PLC (ADR) (NASDAQ:WPPGY), and Air Products & Chemicals, Inc. (NYSE:APD). All of these stocks’ market caps match MNST’s market cap.

As you can see these stocks had an average of 46.25 hedge funds with bullish positions and the average amount invested in these stocks was $3,605 million. That figure was $773 million in MNST’s case. Air Products & Chemicals, Inc. (NYSE:APD) is the most popular stock in this table. On the other hand WPP PLC (ADR) (NASDAQ:WPPGY) is the least popular one with only 9 bullish hedge fund positions. Monster Beverage Corp (NASDAQ:MNST) 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 APD might be a better candidate to consider a long position.