Is KEMET Corporation (KEM) A Good Stock To Buy?

As industrywide interest jumped, key money managers were breaking ground themselves. Millennium Management, one of the 10 largest hedge funds in the world, assembled the biggest position in KEMET Corporation (NYSE:KEM). The fund reportedly had $0.1 million invested in the company at the end of the quarter. Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital also made a $0.1 million investment in the stock during the quarter. The only other fund with a brand new KEM position is Ken Griffin’s Citadel Investment Group.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as KEMET Corporation (NYSE:KEM) but similarly valued. These stocks are Dawson Geophysical Company (NASDAQ:DWSN), JTH Holding Inc (NASDAQ:TAX), GlycoMimetics Inc (NASDAQ:GLYC), and Collectors Universe, Inc. (NASDAQ:CLCT). This group of stocks’ market valuations match KEM’s market valuation.

As you can see these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $23 million. That figure was $16 million in KEM’s case. Dawson Geophysical Company (NASDAQ:DWSN) is the most popular stock in this table. On the other hand GlycoMimetics Inc (NASDAQ:GLYC) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks KEMET Corporation (NYSE:KEM) 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.

Disclosure: none.