Is The PowerShares QQQ Trust, Series 1 (ETF) (QQQ) A Good ETF To Buy?

As industry-wide interest jumped, specific money managers were breaking ground themselves. Citadel Investment Group created the biggest call position in the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ), while Nokota Management also made a large new investment in the stock during the quarter. The following funds were also among the new QQQ investors: Forward Management, Leonard A. Potter’s Wildcat Capital Management, and Charles Davidson’s Wexford Capital.

Let’s check out hedge fund activity in other stocks similar to PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ). We will take a look at Illinois Tool Works Inc. (NYSE:ITW), Sony Corporation (ADR) (NYSE:SNE), Regeneron Pharmaceuticals Inc (NASDAQ:REGN), and Banco Bilbao Vizcaya Argentaria SA (ADR) (NYSE:BBVA). This group of stocks’ market caps resemble QQQ’s market cap.

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $415 million. That figure was $1.42 billion in QQQ’s case. Illinois Tool Works Inc. (NYSE:ITW) is the most popular stock in this table. On the other hand Banco Bilbao Vizcaya Argentaria SA (ADR) (NYSE:BBVA) is the least popular one with only 6 bullish hedge fund positions. The PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) 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 ITW might be a better candidate to consider a long position in.

Disclosure: None