Is Callaway Golf Co (ELY) A Good Stock To Buy?

Seeing as Callaway Golf Co (NYSE:ELY) has faced falling interest from the aggregate hedge fund industry, we can see that there was a specific group of money managers that slashed their full holdings by the end of the third quarter. Intriguingly, Peter S. Park’s Park West Asset Management cut the biggest position of all the hedgies followed by Insider Monkey, valued at about $27.2 million in stock. Michael Platt and William Reeves’s fund, BlueCrest Capital Mgmt., also dropped its stock, about $3.2 million worth of ELY shares.

Let’s also examine hedge fund activity in other stocks similar to Callaway Golf Co (NYSE:ELY). These stocks are First Merchants Corporation (NASDAQ:FRME), Tronox Ltd (NYSE:TROX), Redwood Trust, Inc. (NYSE:RWT), and Ascena Retail Group Inc (NASDAQ:ASNA). This group of stocks’ market caps are closest to ELY’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 $128 million. That figure was $140 million in ELY’s case. Ascena Retail Group Inc (NASDAQ:ASNA) is the most popular stock in this table. On the other hand First Merchants Corporation (NASDAQ:FRME) is the least popular one with only 11 bullish hedge fund positions. Callaway Golf Co (NYSE:ELY) 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 ASNA might be a better candidate to consider taking a long position in.

Disclosure: none.