Should You Add CA, Inc. (CA) to Your Portfolio?

Judging by the fact that CA, Inc. (NASDAQ:CA) has faced falling interest from the entirety of the hedge funds we track, logic holds that there is a sect of hedge funds that elected to cut their entire stakes between July and September. Interestingly, Phill Gross and Robert Atchinson’s Adage Capital Management dropped the largest position of the 700 funds watched by Insider Monkey, comprising an estimated $14.4 million in call options., and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund sold off about $4.7 million worth of shares.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as CA, Inc. (NASDAQ:CA) but similarly valued. These stocks are Verisk Analytics, Inc. (NASDAQ:VRSK), Potash Corp./Saskatchewan (USA) (NYSE:POT), SBA Communications Corporation (NASDAQ:SBAC), and McCormick & Company, Incorporated (NYSE:MKC). This group of stocks’ market values are closest to CA’s market value.

As you can see these stocks had an average of 26 hedge funds with bullish positions at the end of September and the average amount invested in these stocks was $830 million. That figure was $363 million in CA’s case. SBA Communications Corporation (NASDAQ:SBAC) is the most popular stock in this table. On the other hand Potash Corp./Saskatchewan (USA) (NYSE:POT) is the least popular one with only 18 bullish hedge fund positions. CA, Inc. (NASDAQ:CA) 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 SBA Communications Corporation (NASDAQ:SBAC) might be a better candidate to consider a long position.