Hedge Funds Are Betting On AZZ Inc (AZZ)

Now, key money managers were breaking ground themselves. Two Sigma Advisors, led by John Overdeck and David Siegel, established the largest position in AZZ Inc (NYSE:AZZ). Two Sigma Advisors had $0.5 million invested in the company at the end of the quarter. Ed Beddow and William Tichy’s Beddow Capital Management also initiated a $0.3 million position during the quarter. The other funds with new positions in the stock are Paul Tudor Jones’ Tudor Investment Corp, Ken Griffin’s Citadel Investment Group, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s go over hedge fund activity in other stocks similar to AZZ Inc (NYSE:AZZ). These stocks are First Majestic Silver Corp (NYSE:AG), Chemical Financial Corporation (NASDAQ:CHFC), DSW Inc. (NYSE:DSW), and Werner Enterprises, Inc. (NASDAQ:WERN). This group of stocks’ market caps are closest to AZZ’s market cap.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $129 million. That figure was $16 million in AZZ’s case. DSW Inc. (NYSE:DSW) is the most popular stock in this table. On the other hand Chemical Financial Corporation (NASDAQ:CHFC) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks AZZ Inc (NYSE:AZZ) is even less popular than CHFC. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None