Do Hedge Funds Love City Holding Company (CHCO)?

As industrywide interest jumped, specific money managers have jumped into City Holding Company (NASDAQ:CHCO) headfirst. Citadel Investment Group, led by Ken Griffin, created the most outsized position in City Holding Company (NASDAQ:CHCO). Citadel Investment Group had $1.2 million invested in the company at the end of the quarter. Robert B. Gillam’s McKinley Capital Management also made a $0.2 million investment in the stock during the quarter.

Let’s now take a look at hedge fund activity in other stocks similar to City Holding Company (NASDAQ:CHCO). These stocks are Gray Television, Inc. (NYSE:GTN), Nimble Storage Inc (NYSE:NMBL), Altra Holdings, Inc. (NASDAQ:AIMC), and DTS Inc. (NASDAQ:DTSI). This group of stocks’ market caps are similar to CHCO’s market cap.

As you can see these stocks had an average of 16.5 hedge funds with bullish positions and the average amount invested in these stocks was $114 million. That figure was $42 million in CHCO’s case. Nimble Storage Inc (NYSE:NMBL) is the most popular stock in this table. On the other hand DTS Inc. (NASDAQ:DTSI) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks City Holding Company (NASDAQ:CHCO) is even less popular than DTSI. 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.