What Smart Money Thinks of Assured Guaranty Ltd. (AGO)?

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Because Assured Guaranty Ltd. (NYSE:AGO) has witnessed declining sentiment from hedge fund managers, it’s safe to say that there is a sect of hedgies that elected to cut their entire stakes by the end of the third quarter. Intriguingly, Wayne Cooperman’s Cobalt Capital Management dumped the biggest investment of the “upper crust” of funds watched by Insider Monkey, totaling an estimated $13.2 million in call options. Ken Griffin’s fund, Citadel Investment Group, also dropped its call options, about $2.6 million worth. These moves are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s also examine hedge fund activity in other stocks similar to Assured Guaranty Ltd. (NYSE:AGO). These stocks are Bank Of The Ozarks Inc (NASDAQ:OZRK), Akorn, Inc. (NASDAQ:AKRX), Thor Industries, Inc. (NYSE:THO), and Paramount Group Inc (NYSE:PGRE). This group of stocks’ market valuations are similar to AGO’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
OZRK 22 365278 6
AKRX 28 500562 -6
THO 25 317743 2
PGRE 14 243991 3

As you can see these stocks had an average of 22 funds with bullish positions and the average amount invested in these stocks was $357 million. That figure was $410 million in AGO’s case. Akorn, Inc. (NASDAQ:AKRX) is the most popular stock in this table, while Paramount Group Inc (NYSE:PGRE) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks Assured Guaranty Ltd. (NYSE:AGO) 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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Disclosure: None




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