Is TD Ameritrade Holding Corp. (AMTD) Worthy of Your Portfolio?

Now, specific money managers have jumped into TD Ameritrade Holding Corp. (NYSE:AMTD) headfirst. Dmitry Balyasny’s Balyasny Asset Management  made a $26 million investment in the stock during the third quarter. The following funds were also among the new AMTD investors: Sander Gerber’s Hudson Bay Capital Management, Ken Griffin’s Citadel Investment Group, and Israel Englander’s Millennium Management.

Let’s go over hedge fund activity in other stocks similar to TD Ameritrade Holding Corp. (NYSE:AMTD). These stocks are Grupo Televisa SAB (ADR) (NYSE:TV), American Water Works Co., Inc. (NYSE:AWK), Energy Transfer Equity, L.P. (NYSE:ETE), and Incyte Corporation (NASDAQ:INCY). This group of stocks’ market caps are similar to AMTD’s market cap.

As you can see these stocks had an average of 28 funds with bullish positions and the average amount invested in these stocks was $1.51 billion. That figure was $291 million in AMTD’s case. Incyte Corporation (NASDAQ:INCY) is the most popular stock in this table. On the other hand Energy Transfer Equity, L.P. (NYSE:ETE) is the least popular one with only 20 bullish hedge fund positions. Compared to these stocks TD Ameritrade Holding Corp. (NYSE:AMTD) is even less popular than Energy Transfer Equity, L.P. (NYSE:ETE). Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None