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|
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.