Is Fox Factory Holding Corp (FOXF) Going to Burn Its Backers?

As aggregate interest increased, specific money managers were leading the bulls’ herd. Driehaus Capital initiated the most valuable position in Fox Factory Holding Corp (NASDAQ:FOXF). Matthew Hulsizer’s PEAK6 Capital Management also made a $0.5 million investment in the stock during the quarter. The only other fund with a brand new FOXF position was Cliff Asness’ AQR Capital Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Fox Factory Holding Corp (NASDAQ:FOXF) but similarly valued. We will take a look at SPX Corporation (NYSE:SPXC), Wingstop Inc (NASDAQ:WING), ICF International Inc (NASDAQ:ICFI), and AMAG Pharmaceuticals, Inc. (NASDAQ:AMAG). All of these stocks’ market caps resemble FOXF’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 $124 million. That figure was $17 million in FOXF’s case. AMAG Pharmaceuticals, Inc. (NASDAQ:AMAG) is the most popular stock in this table. On the other hand Wingstop Inc (NASDAQ:WING) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Fox Factory Holding Corp (NASDAQ:FOXF) is even less popular than WING. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock.

Disclosure: None