Is Radian Group Inc (RDN) A Good Investment?

Because Radian Group Inc (NYSE:RDN) has witnessed falling interest from the aggregate hedge fund industry, we can see that there lies a certain “tier” of funds that elected to cut their full holdings in the third quarter. At the top of the heap, James H. Litinsky’s JHL Capital Group cut the largest position of all the hedgies monitored by Insider Monkey, comprising close to $9.3 million in stock, and Gunnar Overstrom’s Three Corner Global Investors was right behind this move, as the fund said goodbye to about $6.5 million worth of shares. These moves are interesting, as total hedge fund interest was cut by 3 funds in the third quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Radian Group Inc (NYSE:RDN). We will take a look at Coherent, Inc. (NASDAQ:COHR), AMAYA INC (NASDAQ:AYA), Big Lots, Inc. (NYSE:BIG), and Cathay General Bancorp (NASDAQ:CATY). All of these stocks’ market caps are similar to RDN’s market cap.

As you can see these stocks had an average of 19.75 hedge funds with bullish positions and the average amount invested in these stocks was $272 million. That figure was $379 million in RDN’s case. Big Lots, Inc. (NYSE:BIG) is the most popular stock in this table. On the other hand Cathay General Bancorp (NASDAQ:CATY) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Radian Group Inc (NYSE:RDN) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers and have more money invested in it, it may be a good idea to analyze it in detail and potentially include it in your portfolio, despite the quarterly dip in ownership.

Disclosure: None