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Is United Parcel Service, Inc. (UPS) a Good Stock to Buy?

Consequently, key money managers were breaking ground themselves. Two Sigma Advisors, managed by John Overdeck and David Siegel, established the largest position in United Parcel Service, Inc. (NYSE:UPS). Two Sigma Advisors had $110.8 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $49.6 million position during the quarter. The following funds were also among the new UPS investors: Israel Englander’s Millennium Management, Ray Dalio’s Bridgewater Associates, and David Costen Haley’s HBK Investments.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as United Parcel Service, Inc. (NYSE:UPS) but similarly valued. These stocks are Accenture Plc (NYSE:ACN), NIKE, Inc. (NYSE:NKE), SAP AG (ADR) (NYSE:SAP), and Allergan, Inc. (NYSE:AGN). All of these stocks’ market caps are similar to UPS’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ACN 37 757119 -1
NKE 55 3720614 -2
SAP 7 844681 -2
AGN 115 10590015 -16

As you can see these stocks had an average of 54 investors holding long positions and the average amount invested in these stocks was $3.98 billion. That figure was $1.53 billion in UPS’s case. Allergan, Inc. (NYSE:AGN) is the most popular stock in this table, while SAP AG (ADR) (NYSE:SAP) is the least popular one with only seven bullish hedge fund positions. United Parcel Service, Inc. (NYSE:UPS) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Allergan, Inc. (NYSE:AGN) might be a better candidate to consider a long position.

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