Hedge Fund Confidence in Sirona Dental Systems, Inc. (SIRO) is Soaring

Now, key hedge funds have been driving this bullishness. Echo Street Capital Management established the largest position in Sirona Dental Systems, Inc. (NASDAQ:SIRO). Echo Street Capital Management had $34.1 million invested in the company at the end of the quarter. Citadel Investment Group also made a $27 million investment in the stock during the quarter. The other funds with brand new SIRO positions are Two Sigma Advisors, Noam Gottesman’s GLG Partners, and Paul Marshall and Ian Wace’s Marshall Wace LLP.

Let’s go over hedge fund activity in other stocks similar to Sirona Dental Systems, Inc. (NASDAQ:SIRO). These stocks are ITC Holdings Corp. (NYSE:ITC), Forest City Enterprises, Inc. (NYSE:FCE), Old Dominion Freight Line (NASDAQ:ODFL), and Flowers Foods, Inc. (NYSE:FLO). This group of stocks’ market caps match SIRO’s market cap.

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $608 million. That figure was $697 million in SIRO’s case. Forest City Enterprises, Inc. (NYSE:FCE) is the most popular stock in this table. On the other hand ITC Holdings Corp. (NYSE:ITC) is the least popular one with only 16 bullish hedge fund positions. Sirona Dental Systems, Inc. (NASDAQ:SIRO) is not the least popular stock in this group but hedge fund interest is still below average, although it is growing. This is a slightly negative signal however and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard FCE might be a better candidate to consider a long position in.