Do Hedge Funds Love Emcor Group Inc (EME)?

As one would reasonably expect, key money managers were leading the bulls’ herd. Adage Capital Management, managed by Phill Gross and Robert Atchinson, initiated the most valuable position in Emcor Group Inc (NYSE:EME). Adage Capital Management had $25.1 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $9.1 million investment in the stock during the quarter. The other funds with brand new EME positions are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Peter Muller’s PDT Partners, and Paul Tudor Jones’s Tudor Investment Corp.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Emcor Group Inc (NYSE:EME) but similarly valued. These stocks are Rayonier Inc. (NYSE:RYN), BBVA Banco Frances S.A. (ADR) (NYSE:BFR), Ritchie Bros. Auctioneers (USA) (NYSE:RBA), and Boston Beer Co Inc (NYSE:SAM). All of these stocks’ market caps resemble EME’s market cap.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $249 million. That figure was $230 million in EME’s case. Ritchie Bros. Auctioneers (USA) (NYSE:RBA) is the most popular stock in this table. On the other hand BBVA Banco Frances S.A. (ADR) (NYSE:BFR) is the least popular one with only 6 bullish hedge fund positions. Emcor Group Inc (NYSE:EME) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard RBA might be a better candidate to consider a long position.