As industrywide interest jumped, specific money managers have been driving this bullishness. Sand Grove Capital Partners created the most outsized position in DTS Inc. (NASDAQ:DTSI). According to regulatory filings, the fund had $18.6 million invested in the company at the end of the quarter. Magnetar Capital also initiated a $13.9 million position during the quarter. The other funds with brand new DTSI positions are Gilchrist Berg’s Water Street Capital, D. E. Shaw’s D E Shaw, and Mario Gabelli’s GAMCO Investors.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as DTS Inc. (NASDAQ:DTSI) but similarly valued. These stocks are CorVel Corporation (NASDAQ:CRVL), National Storage Affiliates Trust (NYSE:NSA), K2M Group Holdings Inc (NASDAQ:KTWO), and Just Energy Group, Inc. Ordinary Shares (Canada) (NYSE:JE). This group of stocks’ market caps resemble DTSI’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $50 million. That figure was $153 million in DTSI’s case. National Storage Affiliates Trust (NYSE:NSA) is the most popular stock in this table. On the other hand Just Energy Group, Inc. Ordinary Shares (Canada) (NYSE:JE) is the least popular one with only 9 bullish hedge fund positions. DTS Inc. (NASDAQ:DTSI) 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 NSA might be a better candidate to consider taking a long position in.