Should You Follow the Smart Money Back Into Freeport-McMoRan Inc (FCX)?

As industrywide interest jumped, key money managers were leading the bulls’ herd. Capital Growth Management, managed by Ken Heebner, established the biggest position in Freeport-McMoRan Inc (NYSE:FCX). Capital Growth Management had $20.1 million invested in the company at the end of the quarter. Christopher A. Winham’s Tide Point Capital also initiated a $19.5 million position during the quarter. The following funds were also among the new FCX investors: David Costen Haley’s HBK Investments, Citadel Investment Group, and Mike Masters’ Masters Capital Management.

Let’s also examine hedge fund activity in other stocks similar to Freeport-McMoRan Inc (NYSE:FCX). We will take a look at Check Point Software Technologies Ltd. (NASDAQ:CHKP), W.W. Grainger, Inc. (NYSE:GWW), Loews Corporation (NYSE:L), and Magna International Inc. (USA) (NYSE:MGA). This group of stocks’ market caps are closest to FCX’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CHKP 35 1013225 4
GWW 17 186511 -2
L 21 319227 -2
MGA 27 435061 -2

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $489 million. That figure was $1.55 billion in FCX’s case. Check Point Software Technologies Ltd. (NASDAQ:CHKP) is the most popular stock in this table. On the other hand W.W. Grainger, Inc. (NYSE:GWW) is the least popular one with only 17 bullish hedge fund positions. Compared to these stocks Freeport-McMoRan Inc (NYSE:FCX) 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.

Disclosure: None