We Put Discovery Communications Inc. (DISCA) Under the Hedge Fund Microscope

Consequently, specific money managers were leading the bulls’ herd. Wallace R. Weitz & Co. assembled the most valuable position in Discovery Communications Inc. (NASDAQ:DISCA). Wallace R. Weitz & Co. had $74.8 million invested in the company at the end of the quarter. Matthew Iorio’s White Elm Capital also initiated a $7.1 million position during the quarter. The other funds with new positions in the stock are Neil Chriss’ Hutchin Hill Capital, Cliff Asness’ AQR Capital Management, and Benjamin A. Smith’s Laurion Capital Management.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Discovery Communications Inc. (NASDAQ:DISCA) but similarly valued. These stocks are Markel Corporation (NYSE:MKL), Citrix Systems, Inc. (NASDAQ:CTXS), Realty Income Corp (NYSE:O), and SanDisk Corporation (NASDAQ:SNDK). This group of stocks’ market caps match Discovery Communications Inc.’s market cap.

As you can see these stocks had an average of 28.5 hedge funds with bullish positions and the average amount invested in these stocks was $834 million. That figure was $429 million in Discovery Communications Inc.’s case. Citrix Systems, Inc. (NASDAQ:CTXS) is the most popular stock in this table. On the other hand Realty Income Corp (NYSE:O) is the least popular one with only 13 bullish hedge fund positions. Discovery Communications Inc. (NASDAQ:DISCA) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Citrix Systems, Inc. might be a better candidate to consider for a long position.