Should You Buy Tiffany & Co. (TIF)?

As aggregate interest increased, some big names were leading the bulls’ herd. Laurion Capital Management, managed by Benjamin A. Smith, assembled the biggest call position in Tiffany & Co. (NYSE:TIF). Laurion Capital Management had $14.8 million invested in the company at the end of the quarter. David Keidan’s Buckingham Capital Management also initiated an $10.9 million position during the quarter. The other funds with brand new TIF positions are Michael Hintze’s CQS Cayman LP, Steve Cohen’s Point72 Asset Management, and Paul Cantor, Joseph Weiss, and Will Wurm’s Beech Hill Partners.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Tiffany & Co. (NYSE:TIF) but similarly valued. We will take a look at Grupo Financiero Santander Mexico, S.A.B. de C.V. ADR (NYSE:BSMX), Bunge Ltd (NYSE:BG), American Water Works Co., Inc. (NYSE:AWK), and Lennar Corporation (NYSE:LEN). This group of stocks’ market values are similar to TIF’s market value.

As you can see these stocks had an average of 27.25 hedge funds with bullish positions and the average amount invested in these stocks was $622 million. That figure was $376 million in TIF’s case. Lennar Corporation (NYSE:LEN) is the most popular stock in this table. On the other hand Grupo Financiero Santander Mexico, S.A.B. de C.V. ADR (NYSE:BSMX) is the least popular one with only 10 bullish hedge fund positions. Tiffany & Co. (NYSE:TIF) 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 LEN might be a better candidate to consider a long position.