Is JAKKS Pacific, Inc. (JAKK) a Good Buy?

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Now, specific money managers have been driving this bullishness. SG Capital Management, managed by Ken Grossman and Glen Schneider, assembled the biggest position in JAKKS Pacific, Inc. (NASDAQ:JAKK). SG Capital Management had $2.3 million invested in the company at the end of the quarter. Eric Edidin and Josh Lobel’s Archer Capital Management also made a $1.1 million investment in the stock during the quarter. The following funds were also among the new JAKK investors: Glenn Russell Dubin’s Highbridge Capital Management, Cliff Asness’ AQR Capital Management, and Chao Ku’s Nine Chapters Capital Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as JAKKS Pacific, Inc. (NASDAQ:JAKK) but similarly valued. We will take a look at Calamos Asset Management, Inc (NASDAQ:CLMS), Medley Management Inc (NYSE:MDLY), Pernix Therapeutics Holdings Inc (NASDAQ:PTX), and Pendrell Corporation – Class A (NASDAQ:PCO). This group of stocks’ market caps are closest to JAKK’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CLMS 7 9734 0
MDLY 4 8935 1
PTX 17 84240 -2
PCO 8 59713 1

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 $41 million. That figure was $31 million in JAKK’s case. Pernix Therapeutics Holdings Inc (NASDAQ:PTX) is the most popular stock in this table. On the other hand Medley Management Inc (NYSE:MDLY) is the least popular one with only 4 bullish hedge fund positions. JAKKS Pacific, Inc. (NASDAQ:JAKK) 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 PTX might be a better candidate to consider a long position.

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