Dycom Industries, Inc. (DY) Hedge Funds Are Snapping Up

With a general bullishness amongst the heavyweights, some big names have been driving this bullishness. SAB Capital Management initiated the largest position in Dycom Industries, Inc. (NYSE:DY). SAB Capital Management had $71.4 million invested in the company at the end of the quarter. Nick Niell’s Arrowgrass Capital Partners also initiated a $4.5 million position during the quarter. The other funds with brand new DY positions are Christian Leone’s Luxor Capital Group, Robert Henry Lynch’s Aristeia Capital, and Mark Broach’s Manatuck Hill Partners.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Dycom Industries, Inc. (NYSE:DY) but similarly valued. These stocks are Texas Capital Bancshares Inc (NASDAQ:TCBI), IBERIABANK Corporation (NASDAQ:IBKC), Huntsman Corporation (NYSE:HUN), and Nu Skin Enterprises, Inc. (NYSE:NUS). This group of stocks’ market valuations is closest to Dycom Industries, Inc. (NYSE:DY)’s market valuation.

As you can see, these stocks had an average of 24 hedge funds with bullish positions and the average amount invested in these stocks was $262 million. That figure was $579 million in Dycom Industries, Inc. (NYSE:DY)’s case. Huntsman Corporation (NYSE:HUN) is the most popular stock in this table. On the other hand, IBERIABANK Corporation (NASDAQ:IBKC) is the least popular one with only 8 bullish hedge fund positions. Dycom Industries, Inc. (NYSE:DY) 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, Huntsman Corporation (NYSE:HUN) might be a better candidate to consider a long position.