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Should You Add KLA-Tencor Corp (KLAC) to Your Portfolio?

Now, some big names were breaking ground themselves. Blue Mountain Capital, managed by Andrew Feldstein and Stephen Siderow, initiated the most outsized position in KLA-Tencor Corp (NASDAQ:KLAC). Blue Mountain Capital had $86.4 million invested in the company at the end of the quarter. David Costen Haley’s HBK Investments also initiated a $82.4 million position during the quarter. The other funds with brand new KLAC positions are Thomas Steyer’s Farallon Capital, Frank Brosens’s Taconic Capital, and Anand Parekh’s Alyeska Investment Group.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as KLA-Tencor Corp (NASDAQ:KLAC) but similarly valued. These stocks are Waters Corporation (NYSE:WAT), Coach, Inc. (NYSE:COH), BRF Brasil Foods SA (ADR) (NYSE:BRFS), and Cimarex Energy Co (NYSE:XEC). This group of stocks’ market valuations resemble KLAC’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
WAT 29 631518 0
COH 32 220693 -4
BRFS 8 172293 -1
XEC 43 1635342 4

As you can see these stocks had an average of 28 investors reporting long positions and the average amount invested in these stocks was $665 million. That figure was $968 million in KLAC’s case. Cimarex Energy Co (NYSE:XEC) is the most popular stock in this table with 43 funds holding shares. On the other hand, BRF Brasil Foods SA (ADR) (NYSE:BRFS) is the least popular one with only eight bullish hedge fund positions. Compared to these stocks KLA-Tencor Corp (NASDAQ:KLAC) 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.

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