Should You Buy Entergy Corporation (ETR)?

As one would reasonably expect, key money managers were leading the bulls’ herd. Citadel Investment Group, managed by Ken Griffin, initiated the largest position in Entergy Corporation (NYSE:ETR). Citadel Investment Group had $6.5 million invested in the company at the end of the quarter. The other funds with new positions in the stock are Michael Platt and William Reeves’ BlueCrest Capital Mgmt., David Costen Haley’s HBK Investments, and Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Entergy Corporation (NYSE:ETR) but similarly valued. We will take a look at DENTSPLY International Inc. (NASDAQ:XRAY), Henry Schein, Inc. (NASDAQ:HSIC), Royal Caribbean Cruises Ltd. (NYSE:RCL), and Agilent Technologies Inc. (NYSE:A). This group of stocks’ market values resemble ETR’s market value.

As you can see these stocks had an average of 30.5 hedge funds with bullish positions and the average amount invested in these stocks was $977 million. That figure was $852 million in ETR’s case. Agilent Technologies Inc. (NYSE:A) is the most popular stock in this table. On the other hand Henry Schein, Inc. (NASDAQ:HSIC) is the least popular one with only 23 bullish hedge fund positions. Entergy Corporation (NYSE:ETR) 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 Agilent might be a better candidate to consider a long position in.

Disclosure: None