Selective Insurance Group (SIGI): Are Hedge Funds Right About This Stock?

Consequently, key hedge funds have jumped into Selective Insurance Group (NASDAQ:SIGI) headfirst. Visium Asset Management, managed by Jacob Gottlieb, established the most outsized position in Selective Insurance Group (NASDAQ:SIGI). Visium Asset Management had $1.6 million invested in the company at the end of the quarter. Matthew Hulsizer’s PEAK6 Capital Management also initiated a $0.7 million position during the quarter. The only other fund with a new position in the stock is Peter Muller’s PDT Partners.

Let’s now take a look at hedge fund activity in other stocks similar to Selective Insurance Group (NASDAQ:SIGI). These stocks are Matador Resources Co (NYSE:MTDR), Delek US Holdings, Inc. (NYSE:DK), Chimerix Inc (NASDAQ:CMRX), and Tahoe Resources Inc (NYSE:TAHO). This group of stocks’ market values resemble SIGI’s market value.

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $205 million, significantly higher than the $44 million figure in SIGI’s case. Delek US Holdings, Inc. (NYSE:DK) is the most popular stock in this table, registering 30 hedge fund positions. On the other hand Matador Resources Co (NYSE:MTDR) is the least popular one. Selective Insurance Group (NASDAQ:SIGI) 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 DK might be a better candidate to consider for a long position.