Is Nucor Corporation (NUE) a Good Buy?

Consequently, key money managers were leading the bulls’ herd. Two Sigma Advisors, managed by John Overdeck and David Siegel, assembled the largest position in Nucor Corporation (NYSE:NUE). Two Sigma Advisors had $50.2 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also made a $11.3 million investment in the stock during the quarter. The other funds with new positions in the stock are Jacob Gottlieb’s Visium Asset Management, Joe DiMenna’s ZWEIG DIMENNA PARTNERS, and Peter Muller’s PDT Partners.

Let’s now take a look at hedge fund activity in other stocks similar to Nucor Corporation (NYSE:NUE). These stocks are Spectra Energy Partners, LP (NYSE:SEP), Liberty Media Corp (NASDAQ:LMCA), Tesoro Corporation (NYSE:TSO), and Regions Financial Corporation (NYSE:RF). All of these stocks’ market caps resemble NUE’s market cap.

As you can see these stocks had an average of 32.75 hedge funds with bullish positions and the average amount invested in these stocks was $1,098 million. That figure was $246 million in NUE’s case. Tesoro Corporation (NYSE:TSO) is the most popular stock in this table. On the other hand Spectra Energy Partners, LP (NYSE:SEP) is the least popular one with only 11 bullish hedge fund positions. Nucor Corporation (NYSE:NUE) 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 TSO might be a better candidate to consider a long position.