American Railcar Industries, Inc. (ARII) Hedge Funds Are Snapping Up

Now, key hedge funds have jumped into American Railcar Industries, Inc. (NASDAQ:ARII) headfirst. Arrowstreet Capital assembled the most valuable position in American Railcar Industries, Inc. (NASDAQ:ARII). Jim Simons’ Renaissance Technologies also made a $1.2 million investment in the stock during the quarter. The other funds with brand new ARII positions are Benjamin A. Smith’s Laurion Capital Management, Israel Englander’s Millennium Management, and Ken Griffin’s Citadel Investment Group.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as American Railcar Industries, Inc. (NASDAQ:ARII) but similarly valued. These stocks are Aduro BioTech Inc (NASDAQ:ADRO), Veritiv Corp (NYSE:VRTV), Denny’s Corporation (NASDAQ:DENN), and Scorpio Tankers Inc. (NYSE:STNG). This group of stocks’ market valuations resemble ARII’s market valuation.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $87 million. That figure was $523 million in ARII’s case. Scorpio Tankers Inc. (NYSE:STNG) is the most popular stock in this table. On the other hand Aduro BioTech Inc (NASDAQ:ADRO) is the least popular one with only 6 bullish hedge fund positions. American Railcar Industries, Inc. (NASDAQ:ARII) 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 STNG might be a better candidate to consider taking a long position in.