Hedge Funds Are Betting On REX American Resources Corp (REX)

As aggregate interest increased, key hedge funds have been driving this bullishness. Citadel Investment Group, led by Ken Griffin, created the most outsized position in REX American Resources Corp (NYSE:REX). Citadel Investment Group had $2.6 million invested in the company at the end of the quarter. Neil Chriss’ Hutchin Hill Capital also made a $1.7 million investment in the stock during the quarter.

Let’s also examine hedge fund activity in other stocks similar to REX American Resources Corp (NYSE:REX). We will take a look at Pace Holdings Corp (NASDAQ:PACE), Vera Bradley, Inc. (NASDAQ:VRA), Nanometrics Incorporated (NASDAQ:NANO), and PDL BioPharma Inc. (NASDAQ:PDLI). All of these stocks’ market caps resemble REX’s market cap.

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $126 million. That figure was $68 million in REX’s case. Pace Holdings Corp (NASDAQ:PACE) is the most popular stock in this table. On the other hand Nanometrics Incorporated (NASDAQ:NANO) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks REX American Resources Corp (NYSE:REX) is even less popular than NANO. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

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