Is Red Hat, Inc. (RHT) Going to Burn These Hedge Funds?

Consequently, key hedge funds have jumped into Red Hat, Inc. (NYSE:RHT) headfirst. Balyasny Asset Management, managed by Dmitry Balyasny, created the most outsized position in Red Hat, Inc. (NYSE:RHT). Balyasny Asset Management had $3.2 million invested in the company at the end of the quarter. Wojciech Uzdelewicz’s Espalier Global Management also made a $2.5 million investment in the stock during the quarter. The other funds with new positions in the stock are Drew Cupps’ Cupps Capital Management, David Costen Haley’s HBK Investments, and Richard Schimel’s Sterling Ridge Capital Management.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Red Hat, Inc. (NYSE:RHT) but similarly valued. These stocks are Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH), Loews Corporation (NYSE:L), Best Buy Co., Inc. (NYSE:BBY), and Agrium Inc. (USA) (NYSE:AGU). This group of stocks’ market values is similar to Red Hat, Inc. (NYSE:RHT)’s market value.

As you can see, these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $910 million. That figure was $555 million in Red Hat, Inc. (NYSE:RHT)’s case. Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH) is the most popular stock in this table. On the other hand, Loews Corporation (NYSE:L) is the least popular one with only 19 bullish hedge fund positions. Compared to these stocks, Red Hat, Inc. (NYSE:RHT) 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.