Is Shutterstock Inc (SSTK) Going to Burn These Hedge Funds?

As one would reasonably expect, specific money managers were breaking ground themselves. PEAK6 Capital Management, led by Matthew Hulsizer, established the largest call position in Shutterstock Inc (NYSE:SSTK). PEAK6 Capital Management had $2.4 million invested in the company at the end of the quarter. Symmetry Peak Management also made a $2.3 million investment in the stock during the quarter. The other funds with new positions in the stock are Ken Griffin’s Citadel Investment Group, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, and Panayotis Takis Sparaggis’ Alkeon Capital Management.

Let’s check out hedge fund activity in other stocks similar to Shutterstock Inc (NYSE:SSTK). We will take a look at Wageworks Inc (NYSE:WAGE), Manitowoc Foodservice Inc(NYSE:MFS), Darling International Inc. (NYSE:DAR), and J&J Snack Foods Corp. (NASDAQ:JJSF). All of these stocks’ market caps resemble SSTK’s market cap.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $287 million. That figure was $37 million in SSTK’s case. Darling International Inc. (NYSE:DAR) is the most popular stock in this table. On the other hand Wageworks Inc (NYSE:WAGE) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Shutterstock Inc (NYSE:SSTK) is even less popular than WAGE. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None