Great Lakes Dredge & Dock Corporation (GLDD): Are Hedge Funds Right About This Stock?

As industrywide interest jumped, key money managers were breaking ground themselves. Citadel Investment Group, led by Ken Griffin, initiated the most outsized position in Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD). Citadel Investment Group had $0.4 million invested in the company at the end of the quarter. Nelson Obus’s Wynnefield Capital also initiated a $0.4 million position during the quarter. The only other fund with a brand new GLDD position is John A. Levin’s Levin Capital Strategies.

Let’s also examine hedge fund activity in other stocks similar to Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD). These stocks are Vishay Precision Group Inc (NYSE:VPG), Veracyte Inc (NASDAQ:VCYT), Flex Pharma Inc (NASDAQ:FLKS), and Black Box Corporation (NASDAQ:BBOX). This group of stocks’ market valuations are closest to GLDD’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
VPG 11 61990 2
VCYT 8 17593 1
FLKS 4 1968 -3
BBOX 10 17647 1

As you can see these stocks had an average of 8.25 hedge funds with bullish positions and the average amount invested in these stocks was $25 million. That figure was $9 million in GLDD’s case. Vishay Precision Group Inc (NYSE:VPG) is the most popular stock in this table. On the other hand Flex Pharma Inc (NASDAQ:FLKS) is the least popular one with only 4 bullish hedge fund positions. Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD) is the most popular stock in this group, along with VPG. Given that, the stock may be worth a closer look.

Disclosure: None