What Do Hedge Funds Think of Broadcom Corporation (BRCM)?

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Since Broadcom Corporation (NASDAQ:BRCM) has witnessed falling interest from the smart money, we can see that there was a specific group of hedgies that slashed their entire stakes heading into Q4. Interestingly, John Paulson’s Paulson & Co sold off the biggest stake of all the hedgies followed by Insider Monkey, comprising an estimated $216.1 million in stock. Matthew Sidman’s fund, Three Bays Capital, also sold off its stock, about $125.2 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 12 funds heading into Q4.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Broadcom Corporation (NASDAQ:BRCM) but similarly valued. These stocks are Travelers Companies Inc (NYSE:TRV), Brookfield Asset Management Inc. (NYSE:BAM), Sony Corporation (ADR) (NYSE:SNE), and Anadarko Petroleum Corporation (NYSE:APC). All of these stocks’ market caps are closest to BRCM’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TRV 32 742795 -11
BAM 23 1343401 4
SNE 21 328356 2
APC 70 3382512 -5

As you can see these stocks had an average of 36.5 hedge funds with bullish positions and the average amount invested in these stocks was $1449 million. That figure was $6730 million in BRCM’s case. Anadarko Petroleum Corporation (NYSE:APC) is the most popular stock in this table. On the other hand Sony Corporation (ADR) (NYSE:SNE) is the least popular one with only 21 bullish hedge fund positions. Broadcom Corporation (NASDAQ:BRCM) 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 APC might be a better candidate to consider a long position.

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