Is Dynex Capital Inc (DX) A Good Stock To Buy?

As one would reasonably expect, some big names have been driving this bullishness. Renaissance Technologies, one of the largest hedge funds in the world, assembled the largest position in Dynex Capital Inc (NYSE:DX). Renaissance Technologies had $1.6 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also initiated a $0.3 million position during the quarter. The only other fund with a brand new DX position is Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s now review hedge fund activity in other stocks similar to Dynex Capital Inc (NYSE:DX). These stocks are Landec Corporation (NASDAQ:LNDC), Habit Restaurants Inc (NASDAQ:HABT), Johnson Outdoors Inc. (NASDAQ:JOUT), and Horizon Global Corp (NYSE:HZN). All of these stocks’ market caps are similar to DX’s market cap.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $48 million. That figure was $9 million in DX’s case. Horizon Global Corp (NYSE:HZN) is the most popular stock in this table. On the other hand Landec Corporation (NASDAQ:LNDC) is the least popular one with only 6 bullish hedge fund positions. Dynex Capital Inc (NYSE:DX) 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 HZN might be a better candidate to consider taking a long position in.