Hedge Funds Are Betting On Smith & Wesson Holding Corp (SWHC)

As aggregate interest increased, some big names were breaking ground themselves. Citadel Investment Group, managed by Ken Griffin, established the biggest call position in Smith & Wesson Holding Corp (NASDAQ:SWHC) worth approximately $3.6 million at the end of the quarter. Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital also initiated a $2.2 million position during the quarter. The following funds were also among the new SWHC investors: D. E. Shaw’s D E Shaw, George Hall’s Clinton Group, and Matthew Tewksbury’s Stevens Capital Management.

Let’s also examine hedge fund activity in other stocks similar to Smith & Wesson Holding Corp (NASDAQ:SWHC). We will take a look at Halyard Health Inc (NYSE:HYH), HubSpot Inc (NYSE:HUBS), Proto Labs Inc (NYSE:PRLB), and Exponent, Inc. (NASDAQ:EXPO). This group of stocks’ market caps are closest to SWHC’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
HYH 20 89019 6
HUBS 24 135436 5
PRLB 9 96825 -2
EXPO 8 60977 -1

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $96 million. That figure was $161 million in SWHC’s case. HubSpot Inc (NYSE:HUBS) is the most popular stock in this table. On the other hand Exponent, Inc. (NASDAQ:EXPO) is the least popular one with only 8 bullish hedge fund positions. Smith & Wesson Holding Corp (NASDAQ:SWHC) 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 HUBS might be a better candidate to consider a long position.

Disclosure: none.