Is Convergys Corporation (CVG) a Good Stock to Invest in?

Since Convergys Corporation (NYSE:CVG) has weathered falling interest from hedge fund managers, it’s easy to see that there is a sect of money managers who sold off their positions entirely in the third quarter. Intriguingly, Ken Griffin’s Citadel Investment Group said goodbye to the largest stake of the “upper crust” of funds studied by Insider Monkey, valued at close to $1.8 million in stock. Matthew Tewksbury’s fund, Stevens Capital Management, also dropped its stock valued at about $1.8 million.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Convergys Corporation (NYSE:CVG) but similarly valued. These stocks are Tootsie Roll Industries, Inc. (NYSE:TR), SouFun Holdings Limited (ADR) (NYSE:SFUN), BGC Partners, Inc. (NASDAQ:BGCP), and Summit Materials Inc (NYSE:SUM). This group of stocks’ market caps are similar to CVG’s market cap.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $186 million, versus $141 million in CVG’s case. Summit Materials Inc (NYSE:SUM) is the most popular stock in this table. On the other hand SouFun Holdings Limited (ADR) (NYSE:SFUN) is the least popular one with only 11 bullish hedge fund positions. Convergys Corporation (NYSE:CVG) 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 Summit Materials Inc (NYSE:SUM) might be a better candidate to consider taking a long position in.

Disclosure: None