Hedge Funds Are Betting On Casella Waste Systems Inc. (CWST)

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As one would reasonably expect, key hedge funds have jumped into Casella Waste Systems Inc. (NASDAQ:CWST) headfirst. Brant Point Investment Management, led by Ira Unschuld, initiated the biggest position in Casella Waste Systems Inc. (NASDAQ:CWST). Brant Point Investment Management had $3.4 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also made a $0.4 million investment in the stock during the quarter. The only other fund with a new position in the stock is Cliff Asness’ AQR Capital Management.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Casella Waste Systems Inc. (NASDAQ:CWST) but similarly valued. These stocks are NMI Holdings Inc (NASDAQ:NMIH), DICE HOLDINGS, INC. (NYSE:DHX), Flexion Therapeutics Inc (NASDAQ:FLXN), and Natural Health Trends Corp. (NASDAQ:NHTC). This group of stocks’ market values are similar to CWST’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NMIH 21 145771 4
DHX 17 28977 0
FLXN 8 40444 -3
NHTC 10 39773 0

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $64 million. That figure was $101 million in CWST’s case. NMI Holdings Inc (NASDAQ:NMIH) is the most popular stock in this table. On the other hand Flexion Therapeutics Inc (NASDAQ:FLXN) is the least popular one with only 8 bullish hedge fund positions. Casella Waste Systems Inc. (NASDAQ:CWST) 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 NMIH might be a better candidate to consider taking a long position in.

Disclosure: None

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