Hedge Funds Are Betting On Alleghany Corporation (Y)

With a general bullishness amongst the heavyweights, specific money managers have been driving this bullishness. Cove Street Capital, led by Jeffrey Bronchick, assembled the largest position in Alleghany Corporation (NYSE:Y). Cove Street Capital had $6.4 million invested in the company at the end of the quarter. Mike Vranos’ Ellington also made a $0.8 million investment in the stock during the quarter. The other funds with new positions in the stock are David Costen Haley’s HBK Investments, Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital, and George Hall’s Clinton Group.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Alleghany Corporation (NYSE:Y) but similarly valued. We will take a look at Regency Centers Corp (NYSE:REG), ANSYS, Inc. (NASDAQ:ANSS), Plains GP Holdings LP (NYSE:PAGP), and Rite Aid Corporation (NYSE:RAD). All of these stocks’ market caps match Y’s market cap.

As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $637 million. That figure was $407 million in Y’s case. Rite Aid Corporation (NYSE:RAD) is the most popular stock in this table. On the other hand Regency Centers Corp (NYSE:REG) is the least popular one with only 11 bullish hedge fund positions. Alleghany Corporation (NYSE:Y) 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 RAD might be a better candidate to consider taking a long position in.

Disclosure: None