Is Pengrowth Energy Corp (USA) (PGH) A Good Stock To Buy?

As industrywide interest jumped, specific money managers were leading the bulls’ herd. AQR Capital Management, led by Cliff Asness, established the largest position in Pengrowth Energy Corp (USA) (NYSE:PGH). AQR Capital Management had $0 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $0 million position during the quarter. The only other fund with a new position in the stock is John Overdeck and David Siegel’s Two Sigma Advisors.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Pengrowth Energy Corp (USA) (NYSE:PGH) but similarly valued. We will take a look at Invesco Dynamic Credit Opportunities Fd (NYSE:VTA), Urstadt Biddle Properties Inc (NYSE:UBA), Banc of California Inc (NYSE:BANC), and Ethan Allen Interiors Inc. (NYSE:ETH). This group of stocks’ market values are closest to PGH’s market value.

As you can see these stocks had an average of 11.5 hedge funds with bullish positions and the average amount invested in these stocks was $53 million. That figure was $10 million in PGH’s case. Banc of California Inc (NYSE:BANC) is the most popular stock in this table. On the other hand Invesco Dynamic Credit Opportunities Fd (NYSE:VTA) is the least popular one with only 4 bullish hedge fund positions. Pengrowth Energy Corp (USA) (NYSE:PGH) 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 BANC might be a better candidate to consider taking a long position in.