Energy Recovery, Inc. (ERII) Hedge Funds Are Snapping Up

As aggregate interest increased, key money managers have jumped into Energy Recovery, Inc. (NASDAQ:ERII) headfirst. Driehaus Capital, led by Richard Driehaus, created the largest position in Energy Recovery, Inc. (NASDAQ:ERII). Driehaus Capital had $5.4 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also initiated a $2.2 million position during the quarter. The other funds with brand new ERII positions are William Harnisch’s Peconic Partners LLC, Matthew Hulsizer’s PEAK6 Capital Management, and Neil Chriss’ Hutchin Hill Capital.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Energy Recovery, Inc. (NASDAQ:ERII) but similarly valued. We will take a look at Raven Industries, Inc. (NASDAQ:RAVN), TCP Capital Corp (NASDAQ:TCPC), Ambac Financial Group, Inc. (NASDAQ:AMBC), and Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA). This group of stocks’ market values are closest to ERII’s market value.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $100 million. That figure was $34 million in ERII’s case. Ambac Financial Group, Inc. (NASDAQ:AMBC) is the most popular stock in this table. On the other hand TCP Capital Corp (NASDAQ:TCPC) is the least popular one with only 6 bullish hedge fund positions. Energy Recovery, Inc. (NASDAQ:ERII) 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 AMBC might be a better candidate to consider taking a long position in.

Disclosure: None