Is Yahoo! Inc. (YHOO) a Good Stock to Invest in?

As industrywide interest jumped, key hedge funds were leading the bulls’ herd. Senator Investment Group, managed by Doug Silverman and Alexander Klabin, assembled the most valuable position in Yahoo! Inc. (NASDAQ:YHOO). Senator Investment Group had $147.1 million invested in the company at the end of the quarter. Matthew Sidman’s Three Bays Capital also initiated a $104.6 million position during the quarter. The following funds were also among the new YHOO investors: Richard Gerson and Navroz D. Udwadia’s Falcon Edge Capital, David Tepper’s Appaloosa Management LP, and Ken Griffin’s Citadel Investment Group.

Let’s now review hedge fund activity in other stocks similar to Yahoo! Inc. (NASDAQ:YHOO). We will take a look at T MOBILE US INC (NYSE:TMUS), Mizuho Financial Group Inc. (ADR) (NYSE:MFG), The Kroger Co. (NYSE:KR), and Carnival plc (ADR) (NYSE:CUK). This group of stocks’ market values resemble YHOO’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TMUS 58 3343677 6
MFG 5 11054 0
KR 40 946147 5
CUK 10 41201 -1

As you can see, on average 28 funds held long positions in each of these stocks and the average amount invested in these stocks was $1.09 billion. That figure was $8.27 billion in Yahoo’s case. T MOBILE US INC (NYSE:TMUS) is the most popular stock in this table with six funds holding shares. On the other hand Mizuho Financial Group Inc. (ADR) (NYSE:MFG) is the least popular one with only five bullish hedge fund positions. Compared to these stocks Yahoo! Inc. (NASDAQ:YHOO) is significantly 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.