Apollo Investment Corp. (AINV): Are Hedge Funds Right About This Stock?

Page 2 of 2

As one would reasonably expect, key hedge funds have been driving this bullishness. Raiff Partners established the most outsized position in Apollo Investment Corp. (NASDAQ:AINV). Israel Englander’s Millennium Management also initiated a $0.2 million position during the quarter. The other funds with brand new AINV positions are Ken Griffin’s Citadel Investment Group, Neil Chriss’ Hutchin Hill Capital, and David Costen Haley’s HBK Investments.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Apollo Investment Corp. (NASDAQ:AINV) but similarly valued. These stocks are WestAmerica Bancorp. (NASDAQ:WABC), Huron Consulting Group (NASDAQ:HURN), MaxLinear, Inc. (NYSE:MXL), and FibroGen Inc (NASDAQ:FGEN). All of these stocks’ market caps are closest to AINV’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
WABC 6 13538 1
HURN 12 16830 1
MXL 24 169598 -2
FGEN 15 103111 -2

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $76 million. That figure was $9 million in AINV’s case. MaxLinear, Inc. (NYSE:MXL) is the most popular stock in this table. On the other hand WestAmerica Bancorp. (NASDAQ:WABC) is the least popular one with only 6 bullish hedge fund positions. Apollo Investment Corp. (NASDAQ:AINV) 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 MXL might be a better candidate to consider taking a long position in.

Disclosure: None

Page 2 of 2