Do Hedge Funds Love Advanced Drainage Systems Inc (WMS)?

With a general bullishness amongst the heavyweights, specific money managers were breaking ground themselves. Citadel Investment Group, led by Ken Griffin, initiated the largest position in Advanced Drainage Systems Inc (NYSE:WMS). According to regulatory filings, the fund had $2.3 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP also initiated a $1.1 million position during the quarter. The only other fund with a new position in the stock is John Overdeck and David Siegel’s Two Sigma Advisors.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Advanced Drainage Systems Inc (NYSE:WMS) but similarly valued. We will take a look at Magellan Health Services Inc (NASDAQ:MGLN), Progress Software Corporation (NASDAQ:PRGS), CYS Investments Inc (NYSE:CYS), and Celestica Inc. (USA) (NYSE:CLS). All of these stocks’ market caps are closest to WMS’s market cap.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $94 million. That figure was $313 million in WMS’s case. Magellan Health Services Inc (NASDAQ:MGLN) is the most popular stock in this table. On the other hand Celestica Inc. (USA) (NYSE:CLS) is the least popular one with only 11 bullish hedge fund positions. Advanced Drainage Systems Inc (NYSE:WMS) 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 MGLN might be a better candidate to consider taking a long position in.

Disclosure: none.