Hedge Funds Are Finally Buying Scientific Games Corp (SGMS) Again

With general bullishness amongst the heavyweights, key hedge funds were breaking ground themselves. Claar Advisors, managed by Gary Claar, initiated the most valuable position in Scientific Games Corp (NASDAQ:SGMS). The fund reportedly had $4.5 million invested in the company at the end of September. Eric Semler’s TCS Capital Management also initiated a $3.6 million position during the quarter. The other funds with new positions in the stock are Don Morgan’s Brigade Capital, Peter S. Park’s Park West Asset Management, and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Scientific Games Corp (NASDAQ:SGMS) but similarly valued. We will take a look at Trueblue Inc (NYSE:TBI), The Spectranetics Corporation (NASDAQ:SPNC), Sun Hydraulics Corporation (NASDAQ:SNHY), and Unit Corporation (NYSE:UNT). This group of stocks’ market caps are similar to SGMS’s market cap.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $111 million. That figure was $353 million in SGMS’s case. The Spectranetics Corporation (NASDAQ:SPNC) is the most popular stock in this table. On the other hand Sun Hydraulics Corporation (NASDAQ:SNHY) is the least popular one with only 5 bullish hedge fund positions. Scientific Games Corp (NASDAQ:SGMS) 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 SPNC might be a better candidate to consider a long position in.

Disclosure: None