Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Are Hedge Funds On To Something With Federated Investors Inc (FII)?

As aggregate interest increased, some big names were breaking ground themselves. Sprott Asset Management, managed by Eric Sprott, created the most valuable position in Federated Investors Inc (NYSE:FII). Sprott Asset Management had $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 $2.3 million position during the quarter. The following funds were also among the new FII investors: Mike Vranos’ Ellington, Ken Griffin’s Citadel Investment Group, and Neil Chriss’ Hutchin Hill Capital.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Federated Investors Inc (NYSE:FII) but similarly valued. We will take a look at Emcor Group Inc (NYSE:EME), Lions Gate Entertainment Corp. (USA) (NYSE:LGF), NuVasive, Inc. (NASDAQ:NUVA), and Two Harbors Investment Corp (NYSE:TWO). All of these stocks’ market caps match FII’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
EME 17 121478 -3
LGF 28 971484 -12
NUVA 27 381837 -2
TWO 21 111088 3

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $396 million. That figure was $219 million in FII’s case. Lions Gate Entertainment Corp. (USA) (NYSE:LGF) is the most popular stock in this table. On the other hand Emcor Group Inc (NYSE:EME) is the least popular one with only 17 bullish hedge fund positions. Federated Investors Inc (NYSE:FII) 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 really like. In this regard LGF might be a better candidate to consider a long position in, despite its recent tumble in smart money ownership.

Disclosure: None

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.