Is Changyou.Com Ltd (ADR) (CYOU) A Good Stock To Buy?

With a general bullishness amongst the heavyweights, key money managers were breaking ground themselves. Discovery Capital Management, led by Rob Citrone, assembled the biggest position in Changyou.Com Ltd (ADR) (NASDAQ:CYOU). Discovery Capital Management had $14 million invested in the company at the end of the quarter. Yi Xin’s Ariose Capital also initiated a $12.2 million position during the quarter. The other funds with brand new CYOU positions are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Israel Englander’s Millennium Management, and Dmitry Balyasny’s Balyasny Asset Management.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Changyou.Com Ltd (ADR) (NASDAQ:CYOU) but similarly valued. These stocks are Ring Energy Inc (NYSEMKT:REI), THL Credit, Inc. (NASDAQ:TCRD), Arbor Realty Trust, Inc. (NYSE:ABR), and ChannelAdvisor Corp (NYSE:ECOM). This group of stocks’ market valuations are similar to CYOU’s market valuation.

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $23 million. That figure was $79 million in CYOU’s case. Ring Energy Inc (NYSEMKT:REI) is the most popular stock in this table. On the other hand THL Credit, Inc. (NASDAQ:TCRD) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Changyou.Com Ltd (ADR) (NASDAQ:CYOU) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.