Does Crocs, Inc. (CROX) Represent a Good Investment?

With a general bullishness amongst the heavyweights, specific money managers were leading the bulls’ herd. Israel Englander’s Millennium Management initiated the largest position in Crocs, Inc. (NASDAQ:CROX). Millennium Management had $4.4 million invested in the company at the end of the quarter. Mike Vranos’ Ellington also made a $0.7 million investment in the stock during the quarter. The following funds were also among the new CROX investors: Matthew Tewksbury’s Stevens Capital Management, Paul Tudor Jones’ Tudor Investment Corp, and Ken Griffin’s Citadel Investment Group.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Crocs, Inc. (NASDAQ:CROX) but similarly valued. These stocks are CTS Corporation (NYSE:CTS), Nuveen Floating Rate Income Fund (NYSE:JFR), Century Aluminum Co (NASDAQ:CENX), and Viate Pharmaceuticals Inc (NASDAQ:VTAE). This group of stocks’ market valuations are closest to CROX’s market valuation.

As you can see these stocks had an average of 10 funds with bullish positions and the average amount invested in these stocks was $72 million, which is higher than the $37 million figure in CROX’s case. Viate Pharmaceuticals Inc (NASDAQ:VTAE) is the most popular stock in this table. On the other hand CTS Corporation (NYSE:CTS) is the least popular one with only four funds holding shares. Crocs, Inc. (NASDAQ:CROX) 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 Viate Pharmaceuticals Inc (NASDAQ:VTAE) might be a better candidate to consider taking a long position in.

Disclosure: none