Should You Follow the Smart Money Surge Into Everyday Health Inc (EVDY)?

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As industry-wide interest jumped, specific money managers were breaking ground themselves. Thrax Management, led by Sheetal Duggal, assembled the biggest position in Everyday Health Inc (NYSE:EVDY). Thrax Management had $0.3 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also initiated a $0.2 million position during the quarter. The other funds with brand new EVDY positions are Chao Ku’s Nine Chapters Capital Management, Mike Vranos’ Ellington, and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s check out hedge fund activity in other stocks similar to Everyday Health Inc (NYSE:EVDY). We will take a look at Federated National Holding Co (NASDAQ:FNHC), Hawaiian Telcom HoldCo Inc (NASDAQ:HCOM), Nobilis Health Corp (NYSEMKT:HLTH), and Beigene Ltd (ADR) (NASDAQ:BGNE). This group of stocks’ market valuations match EVDY’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FNHC 7 37286 -3
HCOM 7 21394 -2
HLTH 6 7779 1
BGNE 15 122131 1

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $47 million. That figure was $12 million in EVDY’s case. Beigene Ltd (ADR) (NASDAQ:BGNE) is the most popular stock in this table. On the other hand Nobilis Health Corp (NYSEMKT:HLTH) is the least popular one with only 6 bullish hedge fund positions. Everyday Health Inc (NYSE:EVDY) 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 BGNE might be a better candidate to consider taking a long position in.

Disclosure: None

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