Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Engility Holdings Inc (EGL): Are Hedge Funds Right About This Stock?

As industrywide interest jumped, specific money managers have jumped into Engility Holdings Inc (NYSE:EGL) headfirst. Hawk Ridge Management, managed by David Brown, established the largest position in Engility Holdings Inc (NYSE:EGL). Hawk Ridge Management had $7 million invested in the company at the end of the quarter. Chao Ku’s Nine Chapters Capital Management also initiated a $1 million position during the quarter. The following funds were also among the new EGL investors: Glenn Russell Dubin’s Highbridge Capital Management and Dmitry Balyasny’s Balyasny Asset Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Engility Holdings Inc (NYSE:EGL) but similarly valued. These stocks are Merrimack Pharmaceuticals Inc (NASDAQ:MACK), Videocon d2h Ltd – ADR (NASDAQ:VDTH), Capstead Mortgage Corporation (NYSE:CMO), and US Ecology Inc. (NASDAQ:ECOL). This group of stocks’ market caps match EGL’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MACK 10 15406 -3
VDTH 19 144936 -2
CMO 7 17484 -4
ECOL 12 114802 5

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $73 million. That figure was $35 million in EGL’s case. Videocon d2h Ltd – ADR (NASDAQ:VDTH) is the most popular stock in this table. On the other hand Capstead Mortgage Corporation (NYSE:CMO) is the least popular one with only 7 bullish hedge fund positions. Engility Holdings Inc (NYSE:EGL) is not the least popular stock in this group but hedge fund interest is just average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard VDTH might be a better candidate to consider a long position.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...