Convergys Corporation (CVG) is Getting Crushed in Smart Money Popularity by This Stock

As aggregate interest increased, key hedge funds have been driving this bullishness. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, assembled the largest position in Convergys Corporation (NYSE:CVG). Arrowstreet Capital had $6.7 million invested in the company at the end of the quarter. Ken Gray and Steve Walsh’s Bryn Mawr Capital also made a $2.2 million investment in the stock during the quarter. The other funds with brand new CVG positions are Roger Ibbotson’s Zebra Capital Management, Glenn Russell Dubin’s Highbridge Capital Management, and David Dreman’s Dreman Value Management.

Let’s check out hedge fund activity in other stocks similar to Convergys Corporation (NYSE:CVG). These stocks are F.N.B. Corp (NYSE:FNB), Sunedison Inc (NYSE:SUNE), Chemed Corporation (NYSE:CHE), and FS Investment Corporation (NYSE:FSIC). This group of stocks’ market values are closest to CVG’s market value.

As you can see these stocks had an average of 27 hedge funds with bullish positions and the average amount invested in these stocks was $328 million. That figure was $148 million in CVG’s case. Sunedison Inc (NYSE:SUNE) is the most popular stock in this table. On the other hand FS Investment Corporation (NYSE:FSIC) is the least popular one with only 8 bullish hedge fund positions. Convergys Corporation (NYSE:CVG) 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 SUNE might be a better candidate to consider a long position in.