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Is Zimmer Biomet Holdings Inc (ZBH) A Good Stock To Buy?

Now, key money managers were breaking ground themselves. Polar Capital, managed by Brian Ashford-Russell and Tim Woolley, established the most outsized position in Zimmer Biomet Holdings Inc (NYSE:ZBH). Polar Capital had $24.1 million invested in the company at the end of the quarter. Ken Greenberg and David Kim’s Ghost Tree Capital also made a $16.3 million investment in the stock during the quarter. The other funds with new positions in the stock are Benjamin A. Smith’s Laurion Capital Management, Leighton Welch’s Welch Capital Partners, and John Overdeck and David Siegel’s Two Sigma Advisors.

Let’s check out hedge fund activity in other stocks similar to Zimmer Biomet Holdings Inc (NYSE:ZBH). These stocks are Valero Energy Corporation (NYSE:VLO), Consolidated Edison, Inc. (NYSE:ED), Public Service Enterprise Group Inc. (NYSE:PEG), and Zoetis Inc (NYSE:ZTS). This group of stocks’ market valuations match ZBH’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
VLO 42 860326 0
ED 23 513331 9
PEG 20 604657 -2
ZTS 44 2240000 -2

As you can see these stocks had an average of 32.25 hedge funds with bullish positions and the average amount invested in these stocks was $1.05 billion. That figure was $1.54 billion in ZBH’s case. Zoetis Inc (NYSE:ZTS) is the most popular stock in this table. On the other hand Public Service Enterprise Group Inc. (NYSE:PEG) is the least popular one with only 20 bullish hedge fund positions. Zimmer Biomet Holdings Inc (NYSE:ZBH) 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 ZTS might be a better candidate to consider a long position.

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