Is Potash Corp of Saskatchewan (USA) (POT) A Good Stock To Buy?

As aggregate interest increased, key hedge funds have been driving this bullishness. PDT Partners, managed by Peter Muller, assembled the largest position in Potash Corp of Saskatchewan (USA) (NYSE:POT). PDT Partners had $22.3 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also initiated a $21.9 million position during the quarter. The other funds with new positions in the stock are Thomas Ellis and Todd Hammer’s North Run Capital, Benjamin A. Smith’s Laurion Capital Management, and Matthew Tewksbury’s Stevens Capital Management.

Let’s check out hedge fund activity in other stocks similar to Potash Corp of Saskatchewan (USA) (NYSE:POT). We will take a look at Vornado Realty Trust (NYSE:VNO), Intuitive Surgical, Inc. (NASDAQ:ISRG), Macy’s, Inc. (NYSE:M), and BioMarin Pharmaceutical Inc. (NASDAQ:BMRN). This group of stocks’ market valuations match POT’s market valuation.

As you can see these stocks had an average of 43.5 hedge funds with bullish positions and the average amount invested in these stocks was $1206 million. That figure was $823 million in POT’s case. Macy’s, Inc. (NYSE:M) is the most popular stock in this table. On the other hand Vornado Realty Trust (NYSE:VNO) is the least popular one with only 23 bullish hedge fund positions. Potash Corp of Saskatchewan (USA) (NYSE:POT) 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 M might be a better candidate to consider a long position.