Cree, Inc. (CREE): Are Hedge Funds Right About This Stock?

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Consequently, key hedge funds were breaking ground themselves. Valtura Capital Partners, led by Neal Shah, created the largest position in Cree, Inc. (NASDAQ:CREE). Valtura Capital Partners had $5.9 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $5.5 million position during the quarter. The other funds with new positions in the stock are Millennium Management, one of the 10 largest hedge funds in the world, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, and David Harding’s Winton Capital Management.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Cree, Inc. (NASDAQ:CREE) but similarly valued. These stocks are F.N.B. Corp (NYSE:FNB), Zynga Inc (NASDAQ:ZNGA), Buffalo Wild Wings (NASDAQ:BWLD), and Janus Capital Group Inc (NYSE:JNS). All of these stocks’ market caps are similar to CREE’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FNB 14 169080 2
ZNGA 28 476683 8
BWLD 29 369089 4
JNS 20 306404 5

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 $330 million. That figure was $45 million in CREE’s case. Buffalo Wild Wings (NASDAQ:BWLD) is the most popular stock in this table. On the other hand F.N.B. Corp (NYSE:FNB) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks Cree, Inc. (NASDAQ:CREE) is even less popular than FNB. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None

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