Here is What Hedge Funds Think About Bright Horizons Family Solutions Inc (BFAM)

With a general bullishness amongst the heavyweights, specific money managers have been driving this bullishness. Balyasny Asset Management, managed by Dmitry Balyasny, established the largest position in Bright Horizons Family Solutions Inc (NYSE:BFAM). Balyasny Asset Management had $5.4 million invested in the company at the end of the quarter. Chao Ku’s Nine Chapters Capital Management also made a $0.8 million investment in the stock during the quarter. The other funds with brand new BFAM positions are Richard Chilton’s Chilton Investment Company, Michael Platt and William Reeves’s BlueCrest Capital Mgmt., and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Bright Horizons Family Solutions Inc (NYSE:BFAM) but similarly valued. We will take a look at Eaton Vance Corp (NYSE:EV), West Pharmaceutical Services Inc. (NYSE:WST), STERIS plc (NYSE:STE), and ON Semiconductor Corp (NASDAQ:ON). This group of stocks’ market values match BFAM’s market value.

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $285 million. That figure was $190 million in BFAM’s case. ON Semiconductor Corp (NASDAQ:ON) is the most popular stock in this table. On the other hand West Pharmaceutical Services Inc. (NYSE:WST) is the least popular one with only 10 bullish hedge fund positions. Bright Horizons Family Solutions Inc (NYSE:BFAM) 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 ON might be a better candidate to consider a long position.