Should You Follow the Smart Money Into U.S. Physical Therapy, Inc. (USPH)?

As one would reasonably expect, key hedge funds were leading the bulls’ herd. Citadel Investment Group, led by Ken Griffin, created the most outsized position in U.S. Physical Therapy, Inc. (NYSE:USPH). Citadel Investment Group had $0.5 million invested in the company at the end of the quarter. David Costen Haley’s HBK Investments also made a $0.5 million investment in the stock during the quarter. The following funds were also among the new USPH investors: Matthew Tewksbury’s Stevens Capital Management, Joshua Packwood and Schuster Tanger’s Radix Partners, and Joel Greenblatt’s Gotham Asset Management.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as U.S. Physical Therapy, Inc. (NYSE:USPH) but similarly valued. We will take a look at Asanko Gold Inc (NYSEAMEX:AKG), Greenlight Capital Re, Ltd. (NASDAQ:GLRE), Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA), and State Bank Financial Corp (NASDAQ:STBZ). This group of stocks’ market valuations are similar to USPH’s market valuation.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $90 million. That figure was $75 million in USPH’s case. Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA) is the most popular stock in this table. On the other hand Asanko Gold Inc (NYSEAMEX:AKG) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks U.S. Physical Therapy, Inc. (NYSE:USPH) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None