Is 2U Inc (TWOU) A Good Stock To Buy?

With a general bullishness amongst the heavyweights, some big names were breaking ground themselves. Diker Management, led by Mark N. Diker, initiated the most valuable position in 2U Inc (NASDAQ:TWOU). Diker Management had $1.9 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $0.8 million investment in the stock during the quarter. The following funds were also among the new TWOU investors: John Overdeck and David Siegel’s Two Sigma Advisors and Frank Slattery’s Symmetry Peak Management.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as 2U Inc (NASDAQ:TWOU) but similarly valued. These stocks are Fidelity & Guaranty Life (NYSE:FGL), Amkor Technology, Inc. (NASDAQ:AMKR), La-Z-Boy Incorporated (NYSE:LZB), and Renasant Corp. (NASDAQ:RNST). All of these stocks’ market caps are closest to TWOU’s market cap.

As you can see these stocks had an average of 14.75 hedge funds with bullish positions and the average amount invested in these stocks was $83 million. That figure was $71 million in TWOU’s case. Amkor Technology, Inc. (NASDAQ:AMKR) is the most popular stock in this table. On the other hand Renasant Corp. (NASDAQ:RNST) is the least popular one with only 9 bullish hedge fund positions. 2U Inc (NASDAQ:TWOU) 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 AMKR might be a better candidate to consider taking a long position in.