Should You Buy Post Holdings Inc (POST)?

With a general bullishness amongst the heavyweights, key money managers have jumped into Post Holdings Inc (NYSE:POST) headfirst. Ratan Capital Group, managed by Nehal Chopra, assembled the largest position in Post Holdings Inc (NYSE:POST). Ratan Capital Group had $76.2 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $41.5 million investment in the stock during the quarter. The following funds were also among the new POST investors: Renaissance Technologies, Benjamin A. Smith’s Laurion Capital Management, and Peter Muller’s PDT Partners.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Post Holdings Inc (NYSE:POST) but similarly valued. These stocks are Sprouts Farmers Market Inc (NASDAQ:SFM), Two Harbors Investment Corp (NYSE:TWO), Cleco Corporation (NYSE:CNL), and Gulfport Energy Corporation (NASDAQ:GPOR). This group of stocks’ market valuations is similar to Post Holdings Inc (NYSE:POST)’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SFM 22 300705 8
TWO 19 136397 -1
CNL 16 316698 1
GPOR 36 691739 -7

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 $361 million. That figure was $1.36 billion in Post Holdings Inc (NYSE:POST)’s case. Gulfport Energy Corporation (NASDAQ:GPOR) is the most popular stock in this table. On the other hand, Cleco Corporation (NYSE:CNL) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks, Post Holdings Inc (NYSE:POST) 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.