Hedge Funds Are Betting On Hovnanian Enterprises, Inc. (HOV)

As industrywide interest jumped, some big names were leading the bulls’ herd. Tricadia Capital Management assembled the largest position in Hovnanian Enterprises, Inc. (NYSE:HOV). Tricadia Capital Management had $4.7 million invested in the company at the end of the quarter. David Keidan’s Buckingham Capital Management also made a $1.5 million investment in the stock during the quarter. The other funds with brand new HOV positions are Sharif Siddiqui’s Alpenglow Capital, Steve Pei’s Gratia Capital, and Israel Englander’s Millennium Management.

Let’s also examine hedge fund activity in other stocks similar to Hovnanian Enterprises, Inc. (NYSE:HOV). These stocks are Cytokinetics, Inc. (NASDAQ:CYTK), PowerSecure International, Inc. (NASDAQ:POWR), Cohu, Inc. (NASDAQ:COHU), and Fifth Street Senior Floating Rate Corp (NASDAQ:FSFR). This group of stocks’ market valuations resemble HOV’s market valuation.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $22 million, compared to $38 million in HOV’s case. Cytokinetics, Inc. (NASDAQ:CYTK) is the most popular stock in this table, while Fifth Street Senior Floating Rate Corp (NASDAQ:FSFR) is the least popular one with only 4 bullish hedge fund positions. Hovnanian Enterprises, Inc. (NYSE:HOV) 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 CYTK might be a better candidate to consider a long position.