Should You Buy Nuance Communications Inc. (NUAN)?

Now, specific money managers were breaking ground themselves. Gotham Asset Management, managed by Joel Greenblatt, assembled the largest position in Nuance Communications Inc. (NASDAQ:NUAN). Gotham Asset Management had $1.4 million invested in the company at the end of the quarter. Cliff Asness’ AQR Capital Management also initiated a $1.2 million position during the quarter. The following funds were also among the new NUAN investors: Ray Dalio’s Bridgewater Associates, David Costen Haley’s HBK Investments, and George Hall’s Clinton Group.

Let’s now review hedge fund activity in other stocks similar to Nuance Communications Inc. (NASDAQ:NUAN). These stocks are Tegna Inc (NYSE:TGNA), Tyler Technologies, Inc. (NYSE:TYL), Community Health Systems (NYSE:CYH), and TFS Financial Corporation (NASDAQ:TFSL). This group of stocks’ market caps are similar to NUAN’s market cap.

As you can see these stocks had an average of 26.75 hedge funds with bullish positions and the average amount invested in these stocks was $639 million. That figure was $1,154 million in NUAN’s case. Community Health Systems (NYSE:CYH) is the most popular stock in this table. On the other hand Tyler Technologies, Inc. (NYSE:TYL) is the least popular one with only 13 bullish hedge fund positions. Nuance Communications Inc. (NASDAQ:NUAN) 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 CYH might be a better candidate to consider a long position.