Forrester Research, Inc. (FORR): Are Hedge Funds Right About This Stock?

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With a general bullishness amongst the heavyweights, some big names have been driving this bullishness. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital established the biggest position in Forrester Research, Inc. (NASDAQ:FORR). Arrowstreet Capital had $0.6 million invested in the company at the end of the quarter. Cliff Asness’ AQR Capital Management also initiated a $0.2 million position during the quarter.

Let’s also examine hedge fund activity in other stocks similar to Forrester Research, Inc. (NASDAQ:FORR). These stocks are PC Connection, Inc. (NASDAQ:CNXN), Renren Inc (NYSE:RENN), SunCoke Energy Partners LP (NYSE:SXCP), and Greenhill & Co., Inc. (NYSE:GHL). This group of stocks’ market caps resemble FORR’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CNXN 12 60820 2
RENN 6 2585 2
SXCP 3 4445 -2
GHL 16 106468 6

As you can see these stocks had an average of nine funds with bullish positions and the average amount invested in these stocks was $44 million. That figure was $71 million in FORR’s case. Greenhill & Co., Inc. (NYSE:GHL) is the most popular stock in this table. On the other hand SunCoke Energy Partners LP (NYSE:SXCP) is the least popular one with only three bullish hedge fund positions. Forrester Research, Inc. (NASDAQ:FORR) registered the same number of investors holding shares as the average value for its market cap peers. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard GHL might be a better candidate to consider taking a long position in.

Disclosure: None

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