Hedge Funds Are Betting On Credit Acceptance Corp. (CACC)

As one would reasonably expect, key money managers were breaking ground themselves. Hound Partners, led by Jonathan Auerbach, created the biggest position in Credit Acceptance Corp. (NASDAQ:CACC). According to its latest 13F filing, the fund had $103.5 million invested in the company at the end of the quarter. Charles Clough’s Clough Capital Partners also initiated a $23.5 million position during the quarter. The other funds with brand new CACC positions are George Soros’s Soros Fund Management, D. E. Shaw’s D E Shaw, and Ken Griffin’s Citadel Investment Group.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Credit Acceptance Corp. (NASDAQ:CACC) but similarly valued. These stocks are Yamana Gold Inc. (USA) (NYSE:AUY), Techne Corporation (NASDAQ:TECH), The Madison Square Garden Co (NASDAQ:MSG), and Intercept Pharmaceuticals Inc (NASDAQ:ICPT). All of these stocks’ market caps are similar to CACC’s market cap.

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $432 million. That figure was $796 million in CACC’s case. The Madison Square Garden Co (NASDAQ:MSG) is the most popular stock in this table. On the other hand Intercept Pharmaceuticals Inc (NASDAQ:ICPT) is the least popular one with only 15 bullish hedge fund positions. Credit Acceptance Corp. (NASDAQ:CACC) 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 MSG might be a better candidate to consider taking a long position in.

Disclosure: none.