Now, specific money managers were leading the bulls’ herd. Brookside Capital, managed by Bain Capital, assembled the biggest position in Microsoft Corporation (NASDAQ:MSFT). Brookside Capital had $84.1 million invested in the company at the end of the first quarter. Richard Gerson and Navroz D. Udwadia’s Falcon Edge Capital also made a $73 million investment in the stock during the quarter. The following funds were also among the new MSFT investors: Alex Sacerdote’s Whale Rock Capital Management, Alok Agrawal’s Bloom Tree Partners, and David Stemerman’s Conatus Capital Management.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Microsoft Corporation (NASDAQ:MSFT) but similarly valued. We will take a look at Berkshire Hathaway Inc. (NYSE:BRK-B), Exxon Mobil Corporation (NYSE:XOM), Facebook Inc (NASDAQ:FB), and Johnson & Johnson (NYSE:JNJ). All of these stocks’ market caps are closest to MSFT’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 93 hedge funds with bullish positions and the average amount invested in these stocks was $10466 million. That figure was $20831 million in MSFT’s case. Facebook Inc (NASDAQ:FB) is the most popular stock in this table. On the other hand Exxon Mobil Corporation (NYSE:XOM) is the least popular one with only 60 bullish hedge fund positions. Microsoft Corporation (NASDAQ:MSFT) 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 FB might be a better candidate to consider a long position.