Is Valeant Pharmaceuticals Intl Inc (VRX) A Good Stock To Buy?

Due to the fact that Valeant Pharmaceuticals Intl Inc (NYSE:VRX) has experienced a decline in interest from the aggregate hedge fund industry, it’s easy to see that there exists a select few hedge funds that elected to cut their positions entirely in the third quarter. At the top of the heap, Lou Simpson’s SQ Advisors dropped the biggest investment of the 700 funds watched by Insider Monkey, totaling close to $48.9 million in call options., and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund sold off about $36.2 million worth. These moves are important to note, as aggregate hedge fund interest dropped by 2 funds in the third quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Valeant Pharmaceuticals Intl Inc (NYSE:VRX) but similarly valued. We will take a look at Leggett & Platt, Inc. (NYSE:LEG), Gildan Activewear Inc (USA) (NYSE:GIL), Fluor Corporation (NEW) (NYSE:FLR), and The Goodyear Tire & Rubber Company (NASDAQ:GT). This group of stocks’ market caps resemble VRX’s market cap.

As you can see these stocks had an average of 23 funds with bullish positions and the average amount invested in these stocks was $537 million. That figure was $2.81 billion in VRX’s case. The Goodyear Tire & Rubber Company (NASDAQ:GT) is the most popular stock in this table. On the other hand, Gildan Activewear Inc (USA) (NYSE:GIL) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Valeant Pharmaceuticals Intl Inc (NYSE:VRX) 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.