As one would reasonably expect, some big names have jumped into K12 Inc. (NYSE:LRN) headfirst. Royce & Associates, led by Chuck Royce, initiated the biggest position in K12 Inc. (NYSE:LRN). Royce & Associates had $3.5 million invested in the company at the end of the quarter. Neil Chriss’ Hutchin Hill Capital also made a $0.4 million investment in the stock during the quarter. The following funds were also among the new LRN investors: Joshua Packwood and Schuster Tanger’s Radix Partners, David Costen Haley’s HBK Investments, and Matthew Hulsizer’s PEAK6 Capital Management.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as K12 Inc. (NYSE:LRN) but similarly valued. These stocks are Newpark Resources Inc (NYSE:NR), Sabine Royalty Trust (NYSE:SBR), Unifi, Inc. (NYSE:UFI), and PennantPark Investment Corp. (NASDAQ:PNNT). All of these stocks’ market caps are similar to LRN’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| NR | 12 | 43835 | -3 |
| SBR | 7 | 13332 | 0 |
| UFI | 9 | 68164 | 0 |
| PNNT | 5 | 1759 | 0 |
As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $32 million. That figure was $65 million in LRN’s case. Newpark Resources Inc (NYSE:NR) is the most popular stock in this table. On the other hand PennantPark Investment Corp. (NASDAQ:PNNT) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks K12 Inc. (NYSE:LRN) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
Disclosure: None
