Farmer Brothers Co. (FARM): Are Hedge Funds Right About This Stock?

With a general bullishness amongst the heavyweights, specific money managers were breaking ground themselves. Driehaus Capital, led by Richard Driehaus, initiated the most valuable position in Farmer Brothers Co. (NASDAQ:FARM). Driehaus Capital had $3.6 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $0.2 million position during the quarter.

Let’s go over hedge fund activity in other stocks similar to Farmer Brothers Co. (NASDAQ:FARM). We will take a look at Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB), Seabridge Gold, Inc. (USA) (NYSE:SA), 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS), and Novanta Inc (USA) (NASDAQ:NOVT). This group of stocks’ market values are similar to FARM’s market value.

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 $38 million. That figure was $99 million in FARM’s case. 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS) is the most popular stock in this table. On the other hand Seabridge Gold, Inc. (USA) (NYSE:SA) is the least popular one with only 6 bullish hedge fund positions. Farmer Brothers Co. (NASDAQ:FARM) 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 FLWS might be a better candidate to consider taking a long position in.