Do Hedge Funds Love Ply Gem Holdings Inc (PGEM)?

As industrywide interest jumped, key hedge funds have been driving this bullishness. Arrowstreet Capital, led by Peter Rathjens, Bruce Clarke and John Campbell, initiated the largest position in Ply Gem Holdings Inc (NYSE:PGEM). According to its latest 13F filing, the fund had $0.9 million invested in the company at the end of the quarter. Roger Ibbotson’s Zebra Capital Management also initiated a $0.5 million position during the quarter. The other funds with brand new PGEM positions are Neil Chriss’s Hutchin Hill Capital, George Hall’s Clinton Group, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Ply Gem Holdings Inc (NYSE:PGEM) but similarly valued. We will take a look at Apollo Group Inc (NASDAQ:APOL), Synergy Resources Corp (NYSEAMEX:SYRG), Gibraltar Industries Inc (NASDAQ:ROCK), and National HealthCare Corporation (NYSEAMEX:NHC). This group of stocks’ market values are similar to PGEM’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
APOL 17 128024 1
SYRG 12 270087 -6
ROCK 23 144533 2
NHC 7 23466 0

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 $142 million. That figure was $61 million in PGEM’s case. Gibraltar Industries Inc (NASDAQ:ROCK) is the most popular stock in this table. On the other hand National HealthCare Corporation (NYSEAMEX:NHC) is the least popular one with only 7 bullish hedge fund positions. Ply Gem Holdings Inc (NYSE:PGEM) 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 ROCK might be a better candidate to consider taking a long position in.

Disclosure: none.