Hedge Funds Are Crazy About AEP Industries (AEPI): What’s Fueling The Craziness?

With general bullishness amongst the heavyweights, key money managers have jumped into AEP Industries (NASDAQ:AEPI) headfirst. Magnetar Capital assembled the largest position in AEP Industries (NASDAQ:AEPI). Magnetar Capital had $19.1 million invested in the company at the end of the quarter. Marshall Wace LLP also initiated a $2.4 million position during the quarter. The other funds with new positions in the stock are Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners, James Dondero’s Highland Capital Management, and Joel Greenblatt’s Gotham Asset Management.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as AEP Industries (NASDAQ:AEPI) but similarly valued. These stocks are Tsakos Energy Navigation Ltd. (NYSE:TNP), Western Asst High Incm Opprtnty Fnd Inc. (NYSE:HIO), Winmark Corporation (NASDAQ:WINA), and Blue Hills Bancorp Inc (NASDAQ:BHBK). This group of stocks’ market valuations resemble AEPI’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TNP 10 34924 -5
HIO 4 7992 -1
WINA 3 62096 0
BHBK 14 48076 -2

As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $38 million. That figure was $142 million in AEPI’s case. Blue Hills Bancorp Inc (NASDAQ:BHBK) is the most popular stock in this table. On the other hand Winmark Corporation (NASDAQ:WINA) is the least popular one with only 3 bullish hedge fund positions. AEP Industries (NASDAQ:AEPI) 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 BHBK might be a better candidate to consider taking a long position in.

Disclosure: None