Should You Buy Quintiles Transnational Holdings Inc (Q)?

With a general bullishness amongst the heavyweights, key money managers were breaking ground themselves. Arrowgrass Capital Partners, managed by Nick Niell, assembled the biggest position in Quintiles Transnational Holdings Inc (NYSE:Q). Arrowgrass Capital Partners had $5.9 million invested in the company at the end of the quarter. James Dondero’s Highland Capital Management also made a $5.7 million investment in the stock during the quarter. The other funds with new positions in the stock are D E Shaw, Jacob Gottlieb’s Visium Asset Management, and George Hall’s Clinton Group.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Quintiles Transnational Holdings Inc (NYSE:Q) but similarly valued. These stocks are ArcelorMittal (ADR) (NYSE:MT), Westinghouse Air Brake Technologies Corp (NYSE:WAB), Huntington Bancshares Incorporated (NASDAQ:HBAN), and Newmont Mining Corp (NYSE:NEM). This group of stocks’ market valuations are similar to Q’s market valuation.

As you can see these stocks had an average of 25.5 hedge funds with bullish positions and the average amount invested in these stocks was $295 million. That figure was $467 million in Q’s case. Newmont Mining Corp (NYSE:NEM) is the most popular stock in this table. On the other hand ArcelorMittal (ADR) (NYSE:MT) is the least popular one with only 18 bullish hedge fund positions. Quintiles Transnational Holdings Inc (NYSE:Q) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard NEM might be a better candidate to consider a long position.