Should You Add Performance Food Group Co (PFGC) to Your Portfolio?

Because Performance Food Group Co (NYSE:PFGC) has encountered bearish sentiment from the smart money, logic holds that there exists a select few hedgies that decided to sell off their full holdings last quarter. It’s worth mentioning that David Rodriguez-Fraile’s BlueMar Capital Management got rid of the largest position of all the investors monitored by Insider Monkey, comprising an estimated $6.1 million in stock. Paul Marshall and Ian Wace’s fund, Marshall Wace LLP, also sold off its stock, about $5.8 million worth.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Performance Food Group Co (NYSE:PFGC) but similarly valued. These stocks are ENSCO PLC (NYSE:ESV), Prestige Brands Holdings, Inc. (NYSE:PBH), InterXion Holding NV (NYSE:INXN), and Stifel Financial Corp. (NYSE:SF). This group of stocks’ market valuations are similar to PFGC’s market valuation.

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $453 million. That figure was just $31 million in PFGC’s case. InterXion Holding NV (NYSE:INXN) is the most popular stock in this table. On the other hand Stifel Financial Corp. (NYSE:SF) is the least popular one with only 11 bullish hedge fund positions. Performance Food Group Co (NYSE:PFGC) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard InterXion Holding NV (NYSE:INXN) might be a better candidate to consider taking a long position in.

Disclosure: none