Hedge Funds Are Crazy About Amaya Inc (AYA)

With a general bullishness amongst the heavyweights, specific money managers were breaking ground themselves. Andrew Wallach and Jason Ader’s Cumberland Associates / Springowl Associates created the largest position in Amaya Inc (NASDAQ:AYA). Cumberland Associates / Springowl Associates had $22.5 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also initiated a $1.7 million position during the quarter. The following funds were also among the new AYA investors: Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Ken Griffin’s Citadel Investment Group.

Let’s now review hedge fund activity in other stocks similar to AMAYA INC (NASDAQ:AYA). These stocks are Big Lots, Inc. (NYSE:BIG), Cathay General Bancorp (NASDAQ:CATY), Media General, Inc. (NYSE:MEG), and J&J Snack Foods Corp. (NASDAQ:JJSF). This group of stocks’ market valuations resemble AYA’s market valuation.

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $252 million. That figure was $713 million in AYA’s case. Media General, Inc. (NYSE:MEG) is the most popular stock in this table. On the other hand J&J Snack Foods Corp. (NASDAQ:JJSF) is the least popular one with only 10 bullish hedge fund positions. Amaya Inc (NASDAQ:AYA) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard MEG might be a better candidate to consider taking a long position in.

Disclosure: None