Are Hedge Funds Right to be So Bullish on Itron, Inc. (ITRI)?

As industrywide interest jumped, key hedge funds were breaking ground themselves. Adage Capital Management, managed by Phill Gross and Robert Atchinson, created the biggest position in Itron, Inc. (NASDAQ:ITRI). Adage Capital Management had $5.6 million invested in the company at the end of the quarter. Peter Algert and Kevin Coldiron’s Algert Coldiron Investors also made a $1.3 million investment in the stock during the quarter. The following funds were also among the new ITRI investors: Ken Griffin’s Citadel Investment Group and Joel Greenblatt’s Gotham Asset Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Itron, Inc. (NASDAQ:ITRI) but similarly valued. We will take a look at Financial Engines Inc (NASDAQ:FNGN), Magellan Health Services Inc (NASDAQ:MGLN), Columbia Banking System Inc (NASDAQ:COLB), and Kaiser Aluminum Corp. (NASDAQ:KALU). This group of stocks’ market values are closest to ITRI’s market value.

As you can see these stocks had an average of 13.25 hedge funds with bullish positions and the average amount invested in these stocks was $125 million. That figure was $448 million in ITRI’s case. Magellan Health Services Inc (NASDAQ:MGLN) is the most popular stock in this table. On the other hand Columbia Banking System Inc (NASDAQ:COLB) is the least popular one with only 6 bullish hedge fund positions. Itron, Inc. (NASDAQ:ITRI) is tied as the most popular stock in this group and has more money invested in it than any of those stocks. This is a positive signal, as we’d rather spend our time researching stocks that hedge funds are loading up on. In this regard ITRI might be a good candidate to consider a long position in.

Disclosure: None