Does Enzymotec Ltd (ENZY) Stack Up To Its Peers In This Metric?

Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren’t any hedge funds dumping their holdings during the third quarter, there weren’t any hedge funds initiating brand new positions either. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven’t identified any viable catalysts that can attract investor attention.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Enzymotec Ltd (NASDAQ:ENZY) but similarly valued. We will take a look at GigOptix Inc (NYSEAMEX:GIG), CAI International Inc (NYSE:CAI), A. H. Belo Corporation (NYSE:AHC), and Willis Lease Finance Corporation (NASDAQ:WLFC). All of these stocks’ market caps are similar to ENZY’s market cap.

As you can see these stocks had an average of 4 hedge funds with bullish positions and the average amount invested in these stocks was $11 million. That figure was $38 million in ENZY’s case. GigOptix Inc (NYSEAMEX:GIG) is the most popular stock in this table. On the other hand Willis Lease Finance Corporation (NASDAQ:WLFC) is the least popular one with only 2 bullish hedge fund positions. Enzymotec Ltd (NASDAQ:ENZY) is tied as the most popular stock in this group. This is a positive signal, as we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ENZY might be a good candidate to consider taking a long position in.

Disclosure: None