G&K Services Inc (GK): Hedge Funds Are Snapping Up

Consequently, specific money managers have been driving this bullishness. Millennium Management, managed by Israel Englander, assembled the biggest position in G&K Services Inc (NASDAQ:GK). Millennium Management had $3.2 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP also made a $1 million investment in the stock during the quarter. The other funds with brand new GK positions are D. E. Shaw’s D E Shaw and Chao Ku’s Nine Chapters Capital Management.

Let’s now take a look at hedge fund activity in other stocks similar to G&K Services Inc (NASDAQ:GK). These stocks are Main Street Capital Corporation (NYSE:MAIN), Teekay Offshore Partners L.P. (NYSE:TOO), Kindred Healthcare, Inc. (NYSE:KND), and CONMED Corporation (NASDAQ:CNMD). This group of stocks’ market valuations are closest to GK’s market valuation.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $179 million, compared to $65 million in GK’s case. Kindred Healthcare, Inc. (NYSE:KND) is the most popular stock in this table. On the other hand Teekay Offshore Partners L.P. (NYSE:TOO) is the least popular one with only 6 bullish hedge fund positions. G&K Services Inc (NASDAQ:GK) 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 KND might be a better candidate to consider a long position.