Hedge Funds Are Buying RealPage, Inc. (RP)

With a general bullishness amongst the heavyweights, key money managers have been driving this bullishness. Shannon River Fund Management, managed by Spencer M. Waxman, assembled the biggest position in RealPage, Inc. (NASDAQ:RP). According to regulatory filings, the fund had $18.6 million invested in the company at the end of the quarter. Sheetal Duggal’s Thrax Management also made a $2.9 million investment in the stock during the quarter. The other funds with new positions in the stock are Steve Cohen’s Point72 Asset Management, Paul Marshall and Ian Wace’s Marshall Wace LLP, and Adam Wright and Gary Kohler’s Blue Clay Capital.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as RealPage, Inc. (NASDAQ:RP) but similarly valued. These stocks are Wright Medical Group Inc (NASDAQ:WMGI), Exelixis, Inc. (NASDAQ:EXEL), Northwest Natural Gas Co (NYSE:NWN), and Greif, Inc. (NYSE:GEF). This group of stocks’ market values are similar to RP’s market value.

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $350 million. That figure was $257 million in RP’s case. Exelixis, Inc. (NASDAQ:EXEL) is the most popular stock in this table. On the other hand Northwest Natural Gas Co (NYSE:NWN) is the least popular one with only 12 bullish hedge fund positions. RealPage, Inc. (NASDAQ:RP) 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 EXEL might be a better candidate to consider a long position.

Disclosure: none.