Cytec Industries Inc (CYT): Are Hedge Funds Right About This Stock?

Consequently, specific money managers were leading the bulls’ herd. Water Island Capital, managed by John Orrico, established the most valuable position in Cytec Industries Inc (NYSE:CYT), worth some $99 million as previously stated. Robert Emil Zoellner’s Alpine Associates also initiated a $81.3 million position during the quarter. The other funds with brand new CYT positions are Matthew Halbower’s Pentwater Capital Management, Clint Carlson’s Carlson Capital, and Paul Glazer’s Glazer Capital.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Cytec Industries Inc (NYSE:CYT) but similarly valued. We will take a look at Liberty Broadband Corp (NASDAQ:LBRDK), Assurant, Inc. (NYSE:AIZ), Calpine Corporation (NYSE:CPN), and Relx PLC (ADR) (NYSE:RELX). This group of stocks’ market caps match CYT’s market cap.

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $577 million. In the case of CYT, that figure was $850 million. Calpine Corporation (NYSE:CPN) is the most popular stock in this table, whereas Relx PLC (ADR) (NYSE:RELX) is the laggard with only 5 bullish hedge fund positions. Cytec Industries Inc (NYSE:CYT) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CPN might be a better candidate to consider a long position.