Is Reinsurance Group of America Inc (RGA) A Good Stock To Buy?

Seeing as Reinsurance Group of America Inc (NYSE:RGA) has witnessed bearish sentiment from the aggregate hedge fund industry, logic holds that there is a sect of funds that slashed their entire stakes in the third quarter. At the top of the heap, Ron Bobman’s Capital Returns Management dropped the largest stake of all the hedgies followed by Insider Monkey, comprising an estimated $9.6 million in stock. Ken Gray and Steve Walsh’s fund, Bryn Mawr Capital, also dropped its stock, about $0.9 million worth. These moves are important to note, as total hedge fund interest was cut by 2 funds in the third quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Reinsurance Group of America Inc (NYSE:RGA) but similarly valued. These stocks are Qiagen NV (NASDAQ:QGEN), Kilroy Realty Corp (NYSE:KRC), Waste Connections, Inc. (NYSE:WCN), and Brookfield Infrastructure Partners L.P. (NYSE:BIP). This group of stocks’ market values match RGA’s market value.

As you can see these stocks had an average of 14.25 hedge funds with bullish positions and the average amount invested in these stocks was $129 million. That figure was $302 million in RGA’s case. Waste Connections, Inc. (NYSE:WCN) is the most popular stock in this table. On the other hand Kilroy Realty Corp (NYSE:KRC) is the least popular one with only 8 bullish hedge fund positions. Reinsurance Group of America Inc (NYSE:RGA) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard WCN might be a better candidate to consider a long position.