Is Starz (STRZA) A Good Stock To Buy?

Consequently, key hedge funds have jumped into Starz (NASDAQ:STRZA) headfirst. Ascend Capital, managed by Malcolm Fairbairn, initiated the most outsized position in Starz (NASDAQ:STRZA). Ascend Capital had $52.3 million invested in the company at the end of the quarter. Josh Resnick’s Jericho Capital Asset Management also made a $30.7 million investment in the stock during the quarter. The other funds with brand new STRZA positions are Marc Majzner’s Clearline Capital, Michael Thompson’s BHR Capital, and John C. Walker’s Stonerise Capital Management.

Let’s now review hedge fund activity in other stocks similar to Starz (NASDAQ:STRZA). We will take a look at Vail Resorts, Inc. (NYSE:MTN), Sonoco Products Company (NYSE:SON), WellCare Health Plans, Inc. (NYSE:WCG), and Strategic Hotels and Resorts Inc (NYSE:BEE). This group of stocks’ market values match STRZA’s market value.

As you can see these stocks had an average of 28.25 hedge funds with bullish positions and the average amount invested in these stocks was $417 million. That figure was $724 million in STRZA’s case. WellCare Health Plans, Inc. (NYSE:WCG) is the most popular stock in this table. On the other hand Sonoco Products Company (NYSE:SON) is the least popular one with only 24 bullish hedge fund positions. Starz (NASDAQ:STRZA) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard WCG might be a better candidate to consider a long position.