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Transocean LTD (RIG) Hedge Funds Are Snapping Up

As one would reasonably expect, key money managers have been driving this bullishness. Senator Investment Group, managed by Doug Silverman and Alexander Klabin, initiated the most outsized position in Transocean LTD (NYSE:RIG). Senator Investment Group had $80 million invested in the company at the end of the quarter. Noam Gottesman’s GLG Partners also made a $10.7 million investment in the stock during the quarter. The other funds with new positions in the stock are Todd J. Kantor’s Encompass Capital Advisors, Benjamin A. Smith’s Laurion Capital Management, and Ken Griffin’s Citadel Investment Group.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Transocean LTD (NYSE:RIG) but similarly valued. These stocks are AmeriGas Partners, L.P. (NYSE:APU), Banco Macro SA (ADR) (NYSE:BMA), MSC Industrial Direct Co Inc (NYSE:MSM), and DCT Industrial Trust Inc. (NYSE:DCT). This group of stocks’ market valuations are closest to RIG’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
APU 8 5691 3
BMA 18 148895 2
MSM 21 555966 -5
DCT 9 113662 -3

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $206 million. That figure was $457 million in RIG’s case. MSC Industrial Direct Co Inc (NYSE:MSM) is the most popular stock in this table. On the other hand AmeriGas Partners, L.P. (NYSE:APU) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Transocean LTD (NYSE:RIG) 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.

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