Is Potlatch Corporation (PCH) Worthy of Your Portfolio?

With a general bullishness amongst the heavyweights, key hedge funds were breaking ground themselves. Brant Point Investment Management, led by Ira Unschuld, initiated the largest position in Potlatch Corporation (NASDAQ:PCH). Brant Point Investment Management had $4.2 million invested in the company at the end of the quarter. Ken Heebner’s Capital Growth Management also initiated a $1.6 million position during the quarter.

Let’s check out hedge fund activity in other stocks similar to Potlatch Corporation (NASDAQ:PCH). These stocks are First Midwest Bancorp Inc (NASDAQ:FMBI), Heartland Express, Inc. (NASDAQ:HTLD), Chico’s FAS, Inc. (NYSE:CHS), and Flagstar Bancorp Inc (NYSE:FBC). All of these stocks’ market caps are similar to PCH’s market cap.

As you can see these stocks had an average of 14 funds with bullish positions and the average amount invested in these stocks was $99 million. That figure was $80 million in PCH’s case. Chico’s FAS, Inc. (NYSE:CHS) is the most popular stock in this table. On the other hand Flagstar Bancorp Inc (NYSE:FBC) is the least popular one with only 10 funds holding long positions. Potlatch Corporation (NASDAQ:PCH) 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 CHS might be a better candidate to consider taking a long position in.

Disclosure: none