Hedge Funds Are Betting On Pure Cycle Corporation (PCYO)

As one would reasonably expect, some big names have been driving this bullishness. Potomac Capital Management, managed by Paul Solit, established the most valuable position in Pure Cycle Corporation (NASDAQ:PCYO). Potomac Capital Management had $0.5 million invested in the company at the end of the quarter. Matthew Hulsizer’s PEAK6 Capital Management also made a $0 million investment in the stock during the quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Pure Cycle Corporation (NASDAQ:PCYO). We will take a look at Energy Focus Inc (NASDAQ:EFOI), TRACON Pharmaceuticals Inc (NASDAQ:TCON), Xenon Pharmaceuticals Inc (NASDAQ:XENE), and Hugoton Royalty Trust (NYSE:HGT). This group of stocks’ market values resemble PCYO’s market value.

As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $9 million, which is significantly lower than the $51 million figure in PCYO’s case. Xenon Pharmaceuticals Inc (NASDAQ:XENE) is the most popular stock in this table. On the other hand TRACON Pharmaceuticals Inc (NASDAQ:TCON) is the least popular one with only 5 bullish hedge fund positions. Pure Cycle Corporation (NASDAQ:PCYO) 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 XENE might be a better candidate to consider a long position.