Hedge Funds Are Betting On Digimarc Corp (DMRC)

As one would reasonably expect, key hedge funds have been driving this bullishness. Driehaus Capital assembled the most valuable position in Digimarc Corp (NASDAQ:DMRC). G2 Investment Partners Management also made a $0.7 million investment in the stock during the quarter. The following funds were also among the new DMRC investors: Cliff Asness’ AQR Capital Management and Peter Muller’s PDT Partners.

Let’s go over hedge fund activity in other stocks similar to Digimarc Corp (NASDAQ:DMRC). These stocks are CNX Coal Resources LP (NYSE:CNXC), Syneron Medical Ltd. (NASDAQ:ELOS), Compugen Ltd. (USA) (NASDAQ:CGEN), and Pacific Continental Corporation (NASDAQ:PCBK). This group of stocks’ market caps are closest to DMRC’s market cap.

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $50 million. That figure was $23 million in DMRC’s case. Syneron Medical Ltd. (NASDAQ:ELOS) is the most popular stock in this table. On the other hand Compugen Ltd. (USA) (NASDAQ:CGEN) is the least popular one with only 4 bullish hedge fund positions. Digimarc Corp (NASDAQ:DMRC) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ELOS might be a better candidate to consider a long position.