Should You Buy The Corporate Executive Board Company (CEB)?

As one would reasonably expect, key money managers have jumped into The Corporate Executive Board Company (NYSE:CEB) headfirst. D E Shaw, one of the biggest hedge funds in the world, created the biggest position in The Corporate Executive Board Company (NYSE:CEB). D E Shaw had $2.4 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also made a $0.7 million investment in the stock during the quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as The Corporate Executive Board Company (NYSE:CEB) but similarly valued. These stocks are Imperva Inc (NYSE:IMPV), Stag Industrial Inc (NYSE:STAG), Impax Laboratories Inc (NASDAQ:IPXL), and Brady Corp (NYSE:BRC). This group of stocks’ market valuations match CEB’s market valuation.

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 $272 million. That figure was $66 million in CEB’s case. Imperva Inc (NYSE:IMPV) is the most popular stock in this table. On the other hand Stag Industrial Inc (NYSE:STAG) is the least popular one with only 6 bullish hedge fund positions. The Corporate Executive Board Company (NYSE:CEB) 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 IMPV might be a better candidate to consider taking a long position in.

Disclosure: None