Should You Buy China Cord Blood Corp (CO)?

Consequently, key hedge funds have been driving this bullishness. Farallon Capital established the most valuable position in China Cord Blood Corp (NYSE:CO). Farallon Capital had $2.4 million invested in the company at the end of the quarter. GLG Partners also initiated a $1.2 million position during the quarter. The only other fund with a brand new CO position is John Overdeck and David Siegel’s Two Sigma Advisors.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as China Cord Blood Corp (NYSE:CO) but similarly valued. These stocks are Cerus Corporation (NASDAQ:CERS), iDreamSky Technology Ltd(ADR) (NASDAQ:DSKY), Cross Country Healthcare, Inc. (NASDAQ:CCRN), and Ultratech, Inc. (NASDAQ:UTEK). All of these stocks’ market caps resemble China Cord Blood Corp (NYSE:CO)’s market cap.

As you can see, these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $74 million. That figure was $14 million in China Cord Blood Corp (NYSE:CO)’s case. Cross Country Healthcare, Inc. (NASDAQ:CCRN) is the most popular stock in this table. On the other hand, iDreamSky Technology Ltd(ADR) (NASDAQ:DSKY) is the least popular one with only 5 bullish hedge fund positions. China Cord Blood Corp (NYSE:CO) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, Cross Country Healthcare, Inc. (NASDAQ:CCRN) might be a better candidate to consider a long position.