Hedge Funds Are Buying NIC Inc. (EGOV)

Consequently, key money managers have jumped into NIC Inc. (NASDAQ:EGOV) headfirst. Matthew Tewksbury of Stevens Capital Management established the most valuable position in NIC Inc. (NASDAQ:EGOV). Stevens Capital Management had $0.6 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 Dmitry Balyasny’s Balyasny Asset Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as NIC Inc. (NASDAQ:EGOV) but similarly valued. We will take a look at Noble Corporation (NYSE:NE), Enerplus Corp (USA) (NYSE:ERF), California Water Service Group (NYSE:CWT), and International Speedway Corporation (NASDAQ:ISCA). This group of stocks’ market caps are closest to EGOV’s market cap.

As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $157 million. That figure was $62 million in EGOV’s case. Noble Corporation (NYSE:NE) is the most popular stock in this table. On the other hand California Water Service Group (NYSE:CWT) is the least popular one with only 11 bullish hedge fund positions. NIC Inc. (NASDAQ:EGOV) 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 NE might be a better candidate to consider taking a long position in.

Disclosure: None