Here Is What Hedge Funds Think About PIMCO Dynamic Credit Income Fund (PCI)

With a general bullishness amongst the heavyweights, key money managers were breaking ground themselves. Luminus Management established the largest position in PIMCO Dynamic Credit Income Fund (NYSE:PCI). The fund had $3.4 million invested in the company at the end of the quarter. Laurion Capital Management also made a $1.8 million investment in the stock during the quarter. The only other fund with a brand new PCI position is Charles Clough’s Clough Capital Partners.

Let’s go over hedge fund activity in other stocks similar to PIMCO Dynamic Credit Income Fund (NYSE:PCI). These stocks are Kennedy-Wilson Holdings Inc (NYSE:KW), Cree, Inc. (NASDAQ:CREE), Univar Inc (NYSE:UNVR), and Healthcare Realty Trust Inc (NYSE:HR). This group of stocks’ market caps is similar to PIMCO Dynamic Credit Income Fund (NYSE:PCI)’s market cap.

As you can see, these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $196 million. That figure was $53 million in PIMCO Dynamic Credit Income Fund (NYSE:PCI)’s case. Kennedy-Wilson Holdings Inc (NYSE:KW) is the most popular stock in this table, whereas Healthcare Realty Trust Inc (NYSE:HR) is the least popular one, with only 10 bullish hedge fund positions. Compared to these stocks PIMCO Dynamic Credit Income Fund (NYSE:PCI) is even less popular than Healthcare Realty Trust Inc (NYSE:HR). Considering that hedge funds aren’t fond of this stock in relation to other companies compared 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. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case, more research is warranted.