Should You Buy Sonoco Products Company (SON)?

As industrywide interest jumped, specific money managers were leading the bulls’ herd. Renaissance Technologies initiated a $6.8 million position during the quarter. The other funds with new positions in the stock are Greg Poole’s Echo Street Capital Management, John Overdeck and David Siegel’s Two Sigma Advisors, and Ray Dalio’s Bridgewater Associates.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Sonoco Products Company (NYSE:SON) but similarly valued. We will take a look at WellCare Health Plans, Inc. (NYSE:WCG), Strategic Hotels and Resorts Inc (NYSE:BEE), Teradyne, Inc. (NYSE:TER), and Syntel, Inc. (NASDAQ:SYNT). All of these stocks’ market caps match Sonoco Products Company (NYSE:SON)’s market cap.

As you can see, these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $449 million. That figure was $116 million in Sonoco Products Company (NYSE:SON)’s case. WellCare Health Plans, Inc. (NYSE:WCG) is the most popular stock in this table. On the other hand, Syntel, Inc. (NASDAQ:SYNT) is the least popular one with only 17 bullish hedge fund positions. Sonoco Products Company (NYSE:SON) 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, WellCare Health Plans, Inc. (NYSE:WCG) might be a better candidate to consider a long position.