Should You Buy United Continental Holdings Inc (UAL)?

As aggregate interest increased, key hedge funds were leading the bulls’ herd. Berkshire Hathaway, managed by Warren Buffett, created the largest position in United Continental Holdings Inc (NYSE:UAL). Berkshire Hathaway had $237.8 million invested in the company at the end of the quarter. Mike Masters’s Masters Capital Management also initiated a $52.5 million position during the quarter. The following funds were also among the new UAL investors: Ken Griffin’s Citadel Investment Group, Rob Citrone’s Discovery Capital Management, and Robert Polak’s Anchor Bolt Capital.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as United Continental Holdings Inc (NYSE:UAL) but similarly valued. We will take a look at CA, Inc. (NASDAQ:CA), Verisk Analytics, Inc. (NASDAQ:VRSK), Potash Corp./Saskatchewan (USA) (NYSE:POT), and SBA Communications Corporation (NASDAQ:SBAC). This group of stocks’ market valuations are similar to UAL’s market valuation.

As you can see these stocks had an average of 29 funds with bullish positions at the end of September and the average amount invested in these stocks was $889 million. That figure was $3.74 billion in UAL’s case. SBA Communications Corporation (NASDAQ:SBAC) is the most popular stock in this table. On the other hand Potash Corp./Saskatchewan (USA) (NYSE:POT) is the least popular one with only 18 investors holding shares. Compared to these stocks United Continental Holdings Inc (NYSE:UAL) 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.