Hedge Funds Are Buying Ambac Financial Group, Inc. (AMBC)

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As one would reasonably expect, key money managers have been driving this bullishness. Venor Capital Management, led by Jeffrey Bersh and Michael Wartell, created the largest position in Ambac Financial Group, Inc. (NASDAQ:AMBC). Venor Capital Management had $12.6 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also made a $2.6 million investment in the stock during the quarter. The other funds with new positions in the stock are Steven Tananbaum’s GoldenTree Asset Management, Matthew Hulsizer’s PEAK6 Capital Management, and Ken Griffin’s Citadel Investment Group.

Let’s go over hedge fund activity in other stocks similar to Ambac Financial Group, Inc. (NASDAQ:AMBC). These stocks are Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA), Asanko Gold Inc (NYSEAMEX:AKG), Barnes & Noble, Inc. (NYSE:BKS), and ARMOUR Residential REIT, Inc. (NYSE:ARR). All of these stocks’ market caps match AMBC’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MNTA 13 136273 2
AKG 8 87646 0
BKS 15 153873 -6
ARR 6 22230 2

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $100 million. That figure was $179 million in AMBC’s case. Barnes & Noble, Inc. (NYSE:BKS) is the most popular stock in this table. On the other hand ARMOUR Residential REIT, Inc. (NYSE:ARR) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Ambac Financial Group, Inc. (NASDAQ:AMBC) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None

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