Should You Follow Hedge Funds Into Regal Beloit Corp (RBC)?

As one would reasonably expect, specific money managers were leading the bulls’ herd. Millennium Management, managed by Israel Englander, initiated the biggest position in Regal Beloit Corp (NYSE:RBC). Millennium Management had $5 million invested in the company at the end of the quarter. Mark Coe’s Coe Capital Management also initiated a $1.7 million position during the quarter. The following funds were also among the new RBC investors: Matthew Tewksbury’s Stevens Capital Management, Joshua Packwood and Schuster Tanger’s Radix Partners, and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Regal Beloit Corp (NYSE:RBC) but similarly valued. These stocks are Companhia Paranaense de Energia (ADR) (NYSE:ELP), Kite Pharma Inc (NASDAQ:KITE), Cree, Inc. (NASDAQ:CREE), and Darling International Inc. (NYSE:DAR). This group of stocks’ market valuations are closest to RBC’s market valuation.

As you can see these stocks had an average of 18.25 hedge funds with bullish positions and the average amount invested in these stocks was $164 million. That figure was $159 million in RBC’s case. Kite Pharma Inc (NASDAQ:KITE) is the most popular stock in this table. On the other hand Companhia Paranaense de Energia (ADR) (NYSE:ELP) is the least popular one with only 10 bullish hedge fund positions. Regal Beloit Corp (NYSE:RBC) 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 KITE might be a better candidate to consider a long position in.

Disclosure: None