BGC Partners, Inc. (BGCP): Are Hedge Funds Right About This Stock?

As industrywide interest jumped, key money managers have been driving this bullishness. Scoggin, managed by Curtis Schenker and Craig Effron, assembled the most outsized position in BGC Partners, Inc. (NASDAQ:BGCP). Scoggin had $8 million invested in the company at the end of the quarter. Steve Cohen’s Point72 Asset Management also initiated an $3.3 million position during the quarter. The following funds were also among the new BGCP investors: Mike Vranos’s Ellington, David Dreman’s Dreman Value Management, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as BGC Partners, Inc. (NASDAQ:BGCP) but similarly valued. These stocks are Gold Fields Limited (ADR) (NYSE:GFI), Littelfuse, Inc. (NASDAQ:LFUS), Cheetah Mobile Inc (ADR) (NYSE:CMCM), and Nortel Inversora S.A. (ADR) (NYSE:NTL). This group of stocks’ market caps resemble BGCP’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
GFI 16 165266 0
LFUS 13 136706 -7
CMCM 5 21203 -5
NTL 4 16733 0

As you can see these stocks had an average of 9.5 hedge funds with bullish positions and the average amount invested in these stocks was $85 million. That figure was $128 million in BGCP’s case. Gold Fields Limited (ADR) (NYSE:GFI) is the most popular stock in this table. On the other hand Nortel Inversora S.A. (ADR) (NYSE:NTL) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks BGC Partners, Inc. (NASDAQ:BGCP) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.