Hedge Funds Are Buying Teradyne, Inc. (TER)

As industrywide interest jumped, some big names have been driving this bullishness. Gotham Asset Management, managed by Joel Greenblatt, created the most outsized position in Teradyne, Inc. (NYSE:TER). According to regulatory filings, the fund had $9.7 million invested in the company at the end of the quarter. Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital also initiated a $2.6 million position during the quarter. The following funds were also among the new TER investors: Neil Chriss’s Hutchin Hill Capital, Paul Tudor Jones’s Tudor Investment Corp, and Brian Taylor’s Pine River Capital Management.

Let’s check out hedge fund activity in other stocks similar to Teradyne, Inc. (NYSE:TER). These stocks are Dunkin Brands Group Inc (NASDAQ:DNKN), Arris Group, Inc. (NASDAQ:ARRS), Validus Holdings, Ltd. (NYSE:VR), and Bright Horizons Family Solutions Inc (NYSE:BFAM). This group of stocks’ market caps resemble TER’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
DNKN 20 557044 -1
ARRS 39 1254065 3
VR 17 220326 -2
BFAM 12 86899 -3

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $530 million. That figure was $348 million in TER’s case. Arris Group, Inc. (NASDAQ:ARRS) is the most popular stock in this table. On the other hand Bright Horizons Family Solutions Inc (NYSE:BFAM) is the least popular one with only 12 bullish hedge fund positions. Teradyne, Inc. (NYSE:TER) 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 ARRS might be a better candidate to consider a long position.

Disclosure: none.