Syntel, Inc. (SYNT): Are Hedge Funds Right About This Stock?

As industrywide interest jumped, some big names were breaking ground themselves. Neil Chriss’ Hutchin Hill Capital made a $1.6 million investment in the stock during the quarter. The other funds with brand new Syntel, Inc. (NASDAQ:SYNT) positions are John Overdeck and David Siegel’s Two Sigma Advisors, Glenn Russell Dubin’s Highbridge Capital Management, and Mike Vranos’s Ellington.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Syntel, Inc. (NASDAQ:SYNT) but similarly valued. We will take a look at Bank Of The Ozarks Inc (NASDAQ:OZRK), Dun & Bradstreet Corp (NYSE:DNB), LPL Financial Holdings Inc (NASDAQ:LPLA), and Nordson Corporation (NASDAQ:NDSN). This group of stocks’ market valuations resembles Syntel, Inc. (NASDAQ:SYNT)’s market valuation.

As you can see, these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $433 million. That figure was $66 million in Syntel, Inc. (NASDAQ:SYNT)’s case. Dun & Bradstreet Corp (NYSE:DNB) is the most popular stock in this table. On the other hand, Bank Of The Ozarks Inc (NASDAQ:OZRK) is the least popular one with only 13 bullish hedge fund positions. Syntel, Inc. (NASDAQ:SYNT) 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, Dun & Bradstreet Corp (NYSE:DNB) might be a better candidate to consider a long position.