Is Seadrill Ltd (SDRL) Going to Burn These Hedge Funds?

Consequently, key hedge funds have been driving this bullishness. Alyeska Investment Group assembled the most outsized position in Seadrill Ltd (NYSE:SDRL). Alyeska Investment Group had $20.9 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also made a $14.9 million investment in the stock during the quarter. The other funds with brand new SDRL positions are Neil Chriss’s Hutchin Hill Capital, Robert Vollero and Gentry T. Beach’s Vollero Beach Capital Partners, and Benjamin A. Smith’s Laurion Capital Management.

Let’s also examine hedge fund activity in other stocks similar to Seadrill Ltd (NYSE:SDRL). We will take a look at Waddell & Reed Financial, Inc. (NYSE:WDR), SunPower Corporation (NASDAQ:SPWR), John Wiley & Sons Inc (NYSE:JW), and Columbia Property Trust Inc (NYSE:CXP). This group of stocks’ market valuations are closest to SDRL’s market valuation.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $156 million, versus $109 million in SDRL’s case. SunPower Corporation (NASDAQ:SPWR) is the most popular stock in this table. On the other hand Columbia Property Trust Inc (NYSE:CXP) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Seadrill Ltd (NYSE:SDRL) 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 include it in your portfolio.