Should You Buy B/E Aerospace Inc (BEAV)?

Judging by the fact that B/E Aerospace Inc (NASDAQ:BEAV) has witnessed falling interest from the smart money, we can see that there is a sect of hedgies that decided to sell off their entire stakes by the end of the third quarter. At the top of the heap, Thomas Steyer’s Farallon Capital said goodbye to the biggest stake of all the hedgies tracked by Insider Monkey, comprising an estimated $62.9 million in stock, and John Paulson’s Paulson & Co was right behind this move, as the fund sold off about $45.3 million worth of shares.

Let’s check out hedge fund activity in other stocks similar to B/E Aerospace Inc (NASDAQ:BEAV). We will take a look at Kinross Gold Corporation (USA) (NYSE:KGC), Murphy Oil Corporation (NYSE:MUR), Avnet, Inc. (NYSE:AVT), and Reliance Steel & Aluminum (NYSE:RS). This group of stocks’ market values are closest to BEAV’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
KGC 26 633503 -5
MUR 16 391635 1
AVT 26 742965 4
RS 22 439539 -5

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $552 million. That figure was $993 million in BEAV’s case. Kinross Gold Corporation (USA) (NYSE:KGC) is the most popular stock in this table. On the other hand Murphy Oil Corporation (NYSE:MUR) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks B/E Aerospace Inc (NASDAQ:BEAV) 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.

Disclosure: None