Hedge Funds Are Buying Zayo Group Holdings Inc (ZAYO)

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Consequently, key hedge funds were breaking ground themselves. Nick Niell’s Arrowgrass Capital Partners also made a $6.3 million investment in the stock during the quarter. The other funds with brand new ZAYO positions are Richard Driehaus’ Driehaus Capital, Jose Fernandez’s Stepstone Group, and Wilbur Ross’ Invesco Private Capital (WL Ross).

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Zayo Group Holdings Inc (NYSE:ZAYO) but similarly valued. We will take a look at Fluor Corporation (NEW) (NYSE:FLR), Pepco Holdings, Inc. (NYSE:POM), Taro Pharmaceutical Industries Ltd. (NYSE:TARO), and Alexandria Real Estate Equities Inc (NYSE:ARE). This group of stocks’ market values resembles Zayo Group Holdings Inc (NYSE:ZAYO)’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FLR 25 213843 -4
POM 21 278632 5
TARO 23 312394 3
ARE 22 110130 8

As you can see, these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $229 million. That figure was $345 million in Zayo Group Holdings Inc (NYSE:ZAYO)’s case. Fluor Corporation (NEW) (NYSE:FLR) is the most popular stock in this table. On the other hand, Pepco Holdings, Inc. (NYSE:POM) is the least popular one with only 21 bullish hedge fund positions. Zayo Group Holdings Inc (NYSE:ZAYO) 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, Fluor Corporation (NEW) (NYSE:FLR) might be a better candidate to consider a long position.

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