Is Pinnacle Foods Inc (PF) A Good Stock To Buy?

As industrywide interest jumped, some big names have jumped into Pinnacle Foods Inc (NYSE:PF) headfirst. Maverick Capital, managed by Lee Ainslie, established the most outsized position in Pinnacle Foods Inc (NYSE:PF). Maverick Capital had $154.6 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also made a $16.5 million investment in the stock during the quarter. The other funds with brand new PF positions are Dmitry Balyasny’s Balyasny Asset Management, Chao Ku’s Nine Chapters Capital Management, and Matthew Tewksbury’s Stevens Capital Management.

Let’s now take a look at hedge fund activity in other stocks similar to Pinnacle Foods Inc (NYSE:PF). We will take a look at Chesapeake Energy Corporation (NYSE:CHK), RenaissanceRe Holdings Ltd. (NYSE:RNR), National Retail Properties, Inc. (NYSE:NNN), and People’s United Financial, Inc. (NASDAQ:PBCT). This group of stocks’ market valuations are closest to PF’s market valuation.

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $452 million, compared to $1.11 billion in PF’s case. Chesapeake Energy Corporation (NYSE:CHK) is the most popular stock in this table, with 34 funds reporting stakes. On the other hand, People’s United Financial, Inc. (NASDAQ:PBCT) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Pinnacle Foods Inc (NYSE:PF) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially acquire shares for your portfolio.