China XD Plastics Co Ltd (CXDC) Hedge Funds Are Snapping Up

As industrywide interest jumped, some big names have been driving this bullishness. Balyasny Asset Management initiated the most outsized position in China XD Plastics Co Ltd (NASDAQ:CXDC). Balyasny Asset Management had $0.1 million invested in the company at the end of the quarter. Citadel Investment Group also made a $0.1 million investment in the stock during the quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as China XD Plastics Co Ltd (NASDAQ:CXDC) but similarly valued. We will take a look at Enzymotec Ltd (NASDAQ:ENZY), Bonanza Creek Energy Inc (NYSE:BCEI), Xerium Technologies, Inc. (NYSE:XRM), and Utah Medical Products, Inc. (NASDAQ:UTMD). This group of stocks’ market valuations is closest to China XD Plastics Co Ltd (NASDAQ:CXDC)’s market valuation.

As you can see, these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $44 million. That figure was $13 million in China XD Plastics Co Ltd (NASDAQ:CXDC)’s case. Bonanza Creek Energy Inc (NYSE:BCEI) is the most popular stock in this table. On the other hand, Utah Medical Products, Inc. (NASDAQ:UTMD) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks, China XD Plastics Co Ltd (NASDAQ:CXDC) is even less popular than Utah Medical Products, Inc. (NASDAQ:UTMD). Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case, more research is warranted.