Is SUPERVALU INC. (SVU) a Good Stock To Buy?

As one would reasonably expect, some big names have been driving this bullishness. Clearline Capital, led by Marc Majzner, established the most outsized position in SUPERVALU INC. (NYSE:SVU). Clearline Capital had $25.2 million invested in the company at the end of the quarter. Joel Greenblatt’s Gotham Asset Management also made a $6.4 million investment in the stock during the quarter. The other funds with new positions in the stock are Tom Sandell’s Sandell Asset Management, Don Morgan’s Brigade Capital, and William Charters and Mario Marcon’s Sabal Capital Management.

Let’s go over hedge fund activity in other stocks similar to SUPERVALU INC. (NYSE:SVU). These stocks are Neenah Paper, Inc. (NYSE:NP), Universal Corp (NYSE:UVV), Exponent, Inc. (NASDAQ:EXPO), and Wesco Aircraft Holdings Inc (NYSE:WAIR). All of these stocks’ market caps are similar to SVU’s market cap.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $125 million, versus $324 million in SVU’s case. Universal Corp (NYSE:UVV) is the most popular stock in this table. On the other hand Exponent, Inc. (NASDAQ:EXPO) is the least popular one with only eight bullish hedge fund positions. Compared to these stocks SUPERVALU INC. (NYSE:SVU) 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.

Disclosure: none