Hedge Funds Are Starting To Buy PriceSmart, Inc. (PSMT)

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With general bullishness amongst the heavyweights, some big names were leading the bulls’ herd. Gotham Asset Management assembled the most valuable position in PriceSmart, Inc. (NASDAQ:PSMT). Renaissance Technologies also initiated a position during the quarter. The following funds were also among the new PriceSmart, Inc. investors: Millennium Management, Glenn Russell Dubin’s Highbridge Capital Management, and Peter Muller’s PDT Partners.

Let’s check out hedge fund activity in other stocks similar to PriceSmart, Inc. (NASDAQ:PSMT). These stocks are The Timken Company (NYSE:TKR), Domtar Corp (USA) (NYSE:UFS), Covanta Holding Corporation (NYSE:CVA), and First Industrial Realty Trust, Inc. (NYSE:FR). This group of stocks’ market valuations resemble PriceSmart, Inc.’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TKR 20 274701 -4
UFS 20 111838 2
CVA 19 364515 0
FR 16 249996 1

As you can see these stocks had an average of 18.75 hedge funds with bullish positions and the average amount invested in these stocks was $250 million. That figure was $48 million in PriceSmart, Inc.’s case. The Timken Company (NYSE:TKR) is the most popular stock in this table. On the other hand First Industrial Realty Trust, Inc. (NYSE:FR) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks PriceSmart, Inc. (NASDAQ:PSMT) is even less popular than First Industrial. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock, though interest is starting to grow.

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