Should You Follow Hedge Funds Into China Biologic Products Inc (CBPO)?

With a general bullishness amongst the heavyweights, key hedge funds were breaking ground themselves. Ariose Capital established the biggest position in China Biologic Products Inc (NASDAQ:CBPO). Ariose Capital had $27.7 million invested in the company at the end of the quarter. Brian Taylor’s Pine River Capital Management also made a $2.6 million investment in the stock during the quarter. The other funds with brand new CBPO positions are Warren Lammert’s Granite Point Capital, Jane Mendillo’s Harvard Management Co, and Philippe Jabre’s Jabre Capital Partners.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as China Biologic Products Inc (NASDAQ:CBPO) but similarly valued. These stocks are Molina Healthcare, Inc. (NYSE:MOH), PNM Resources, Inc. (NYSE:PNM), Physicians Realty Trust (NYSE:DOC), and Aspen Insurance Holdings Limited (NYSE:AHL). This group of stocks’ market valuations match CBPO’s market valuation.

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $245 million. That figure was $187 million in CBPO’s case. Molina Healthcare, Inc. (NYSE:MOH) is the most popular stock in this table. On the other hand PNM Resources, Inc. (NYSE:PNM) is the least popular one with only 13 bullish hedge fund positions. China Biologic Products Inc (NASDAQ:CBPO) 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 MOH might be a better candidate to consider a long position in.

Disclosure: None