Should You Buy Guess?, Inc. (GES)?

As one would reasonably expect, key hedge funds have been driving this bullishness. Israel Englander’s Millennium Management established the most valuable position in Guess?, Inc. (NYSE:GES). Millennium Management had $6.2 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also initiated a $3.5 million position during the quarter. The other funds with new positions in the stock are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Ken Griffin’s Citadel Investment Group, and Matthew Tewksbury’s Stevens Capital Management.

Let’s check out hedge fund activity in other stocks similar to Guess?, Inc. (NYSE:GES). These stocks are Petrobras Argentina SA ADR (NYSE:PZE), Alliance Holdings GP, L.P. (NASDAQ:AHGP), Acceleron Pharma Inc (NASDAQ:XLRN), and The Buckle, Inc. (NYSE:BKE). This group of stocks’ market valuations are closest to GES’s market valuation.

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 $63 million in GES’s case. Acceleron Pharma Inc (NASDAQ:XLRN) is the most popular stock in this table. On the other hand Alliance Holdings GP, L.P. (NASDAQ:AHGP) is the least popular one with only 4 bullish hedge fund positions. Guess?, Inc. (NYSE:GES) 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 XLRN might be a better candidate to consider taking a long position in.

Disclosure: None