Here is What Hedge Funds Think About Pegasystems Inc. (PEGA)

Now, key money managers have been driving this bullishness. Nine Chapters Capital Management, managed by Chao Ku, initiated the most valuable position in Pegasystems Inc. (NASDAQ:PEGA), worth an estimated $0.7 million at the end of the quarter. Matthew Hulsizer’s PEAK6 Capital Management also made a $0.6 million investment in the stock during the quarter. The other funds with new positions in the stock are Mike Vranos’s Ellington and Paul Marshall and Ian Wace’s Marshall Wace LLP.

Let’s now take a look at hedge fund activity in other stocks similar to Pegasystems Inc. (NASDAQ:PEGA). These stocks are Bitauto Hldg Ltd (ADR) (NYSE:BITA), Darling International Inc. (NYSE:DAR), RSP Permian Inc (NYSE:RSPP), and West Corp (NASDAQ:WSTC). This group of stocks’ market caps are similar to PEGA’s market cap.

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $214 million. That figure was $138 million in PEGA’s case. Darling International Inc. (NYSE:DAR) is the most popular stock in this table. On the other hand Bitauto Hldg Ltd (ADR) (NYSE:BITA) is the least popular one with only 9 bullish hedge fund positions. Pegasystems Inc. (NASDAQ:PEGA) is not the least popular stock in this group, but the number of funds invested equals the average among the stocks from this group. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard DAR might be a better candidate to consider a long position.