Do Hedge Funds Love Schnitzer Steel Industries, Inc. (SCHN)?

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As industrywide interest jumped, some big names have been driving this bullishness. Anchor Bolt Capital created the most valuable position in Schnitzer Steel Industries, Inc. (NASDAQ:SCHN). Joel Greenblatt’s Gotham Asset Management also made a $0.4 million investment in the stock during the quarter. The following funds were also among the new SCHN investors: Glenn Russell Dubin’s Highbridge Capital Management, Cliff Asness’ AQR Capital Management, and Paul Tudor Jones’ Tudor Investment Corp.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Schnitzer Steel Industries, Inc. (NASDAQ:SCHN) but similarly valued. These stocks are First Foundation Inc (NASDAQ:FFWM), Bazaarvoice Inc (NASDAQ:BV), Chase Corporation (NYSEAMEX:CCF), and BlackRock Debt Strategies Fund, Inc. (NYSE:DSU). This group of stocks’ market valuations match SCHN’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FFWM 13 44623 13
BV 14 88971 0
CCF 6 36281 0
DSU 5 57707 2

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $57 million. That figure was $76 million in SCHN’s case. Bazaarvoice Inc (NASDAQ:BV) is the most popular stock in this table, while BlackRock Debt Strategies Fund, Inc. (NYSE:DSU) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Schnitzer Steel Industries, Inc. (NASDAQ:SCHN) is 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.

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