Cray Inc. (CRAY): Are Hedge Funds Right About This Stock?

As industrywide interest jumped, key hedge funds were leading the bulls’ herd. Highbridge Capital Management, managed by Glenn Russell Dubin, established the biggest call position in Cray Inc. (NASDAQ:CRAY). Highbridge Capital Management had $1.1 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also initiated an $0.9 million position during the quarter. The following funds were also among the new CRAY investors: Israel Englander’s Millennium Management, Paul Tudor Jones’s Tudor Investment Corp, and David Costen Haley’s HBK Investments.

Let’s check out hedge fund activity in other stocks similar to Cray Inc. (NASDAQ:CRAY). We will take a look at Tutor Perini Corp (NYSE:TPC), EarthLink, Inc. (NASDAQ:ELNK), Aceto Corporation (NASDAQ:ACET), and Hanmi Financial Corp (NASDAQ:HAFC). This group of stocks’ market caps are closest to CRAY’s market cap.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $78 million, compared to $39 million in CRAY’s case. EarthLink, Inc. (NASDAQ:ELNK) is the most popular stock in this table. On the other hand Aceto Corporation (NASDAQ:ACET) is the least popular one with only 11 bullish hedge fund positions. Cray Inc. (NASDAQ:CRAY) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ELNK might be a better candidate to consider a long position.