Has the Smart Money Found A Winner in Capitol Acquisition Corp III (CLACU)?

Now, key hedge funds have been driving this bullishness. Governors Lane, led by Isaac Corre, established the most outsized position in Capitol Acquisition Corp III (NASDAQ:CLACU). Governors Lane had $2 million invested in the company at the end of the quarter. Andrew Weiss’s Weiss Asset Management also made a $2 million investment in the stock during the quarter. The only other fund with a brand new CLACU position is Glenn Russell Dubin’s Highbridge Capital Management.

Let’s also examine hedge fund activity in other stocks similar to Capitol Acquisition Corp III (NASDAQ:CLACU). These stocks are B. Riley Financial Inc (NASDAQ:RILY), Handy and Harman Ltd (NASDAQ:HNH), Inotek Pharmaceuticals Corp (NASDAQ:ITEK), and Amber Road Inc (NYSE:AMBR). All of these stocks’ market caps match CLACU’s market cap.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $86 million. That figure was $128 million in CLACU’s case. Inotek Pharmaceuticals Corp (NASDAQ:ITEK) is the most popular stock in this table. On the other hand Handy and Harman Ltd (NASDAQ:HNH) is the least popular one with only 3 bullish hedge fund positions. Capitol Acquisition Corp III (NASDAQ:CLACU) 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 ITEK might be a better candidate to consider taking a long position in.

Disclosure: None