What Do Hedge Funds Think of Dunkin Brands Group Inc (DNKN)?

With a general bullishness amongst the heavyweights, key hedge funds were leading the bulls’ herd. Tremblant Capital, managed by Brett Barakett, established the most valuable call position in Dunkin Brands Group Inc (NASDAQ:DNKN). Tremblant Capital had $47.9 million invested in the company at the end of the quarter. Gabriel Plotkin’s Melvin Capital Management also made a $14.7 million investment in the stock during the quarter. The other funds with new positions in the stock are Jim Simons’ Renaissance Technologies, Paul Marshall and Ian Wace’s Marshall Wace LLP, and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s check out hedge fund activity in other stocks similar to Dunkin Brands Group Inc (NASDAQ:DNKN). These stocks are B/E Aerospace Inc (NASDAQ:BEAV), Health Net, Inc. (NYSE:HNT), Jacobs Engineering Group Inc (NYSE:JEC), and Aluminum Corp. of China Limited (ADR) (NYSE:ACH). This group of stocks’ market caps are similar to DNKN’s market cap.

As you can see these stocks had an average of 30 hedge funds with bullish positions and the average amount invested in these stocks was $735 million. That figure was $319 million in DNKN’s case. B/E Aerospace Inc (NASDAQ:BEAV) is the most popular stock in this table. On the other hand Aluminum Corp. of China Limited (ADR) (NYSE:ACH) is the least popular one with only 5 bullish hedge fund positions. Dunkin Brands Group Inc (NASDAQ:DNKN) 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 BEAV might be a better candidate to consider a long position.