Is 3D Systems Corporation (DDD) Going to Burn These Hedge Funds?

As industrywide interest jumped, a couple of money managers were breaking ground themselves. Joel Greenblatt’s Gotham Asset Management  initiated a $0.5 million position during the quarter. The only other fund with a new position in the stock is Cliff Asness’ AQR Capital Management, having amassed a position worth $237,000 at the end of the quarter.

Let’s now review hedge fund activity in other stocks similar to 3D Systems Corporation (NYSE:DDD). We will take a look at Agios Pharmaceuticals Inc (NASDAQ:AGIO), Ericsson (ADR) (NASDAQ:ERIC), Kemper Corporation (NYSE:KMPR), and GCP Applied Technologies Inc(NYSE:GCP). All of these stocks’ market caps are closest to DDD’s market cap.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $257 million. That figure was $61 million in DDD’s case. GCP Applied Technologies Inc(NYSE:GCP) is the most popular stock in this table. On the other hand Kemper Corporation (NYSE:KMPR) is the least popular one with only 5 bullish hedge fund positions. 3D Systems Corporation (NYSE:DDD) 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 GCP might be a better candidate to consider taking a long position in.

Disclosure: none.