Do Hedge Funds Love Embraer SA (ADR) (ERJ)?

As industrywide interest jumped, key money managers have jumped into Embraer SA (ADR) (NYSE:ERJ) headfirst. Prince Street Capital Management established the most outsized position in Embraer SA (ADR) (NYSE:ERJ). The fund reportedly had $2 million invested in the company at the end of the quarter. David Kowitz and Sheldon Kasowitz’s Indus Capital also made a $0.4 million investment in the stock during the quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Embraer SA (ADR) (NYSE:ERJ) but similarly valued. These stocks are PDC Energy Inc (NASDAQ:PDCE), Piedmont Office Realty Trust, Inc. (NYSE:PDM), CLARCOR Inc. (NYSE:CLC), and Harbinger Group Inc (NYSE:HRG). This group of stocks’ market caps are similar to ERJ’s market cap.

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $535 million. That figure was $47 million in ERJ’s case. Harbinger Group Inc (NYSE:HRG) is the most popular stock in this table. On the other hand Piedmont Office Realty Trust, Inc. (NYSE:PDM) is the least popular one with only 10 bullish hedge fund positions. Embraer SA (ADR) (NYSE:ERJ) 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 HRG might be a better candidate to consider taking a long position in.

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Disclosure: None