Hedge Funds Are Crazy About CYS Investments Inc (CYS)

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Consequently, key money managers have jumped into CYS Investments Inc (NYSE:CYS) headfirst. Clough Capital Partners, led by Charles Clough, assembled the largest position in CYS Investments Inc (NYSE:CYS). According to its latest 13F filing, the fund had $8.8 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also made a $0.4 million investment in the stock during the quarter. The following funds were also among the new CYS investors: John Overdeck and David Siegel’s Two Sigma Advisors, Mike Vranos’s Ellington, and Matthew Tewksbury’s Stevens Capital Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as CYS Investments Inc (NYSE:CYS) but similarly valued. We will take a look at Celestica Inc. (USA) (NYSE:CLS), AlarmCom Hldg Inc (NASDAQ:ALRM), Bank of N.T. Butterfield & Son Ltd (NYSE:NTB), and American Axle & Manufact. Holdings, Inc. (NYSE:AXL). This group of stocks’ market valuations are closest to CYS’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CLS 11 53293 -1
ALRM 8 61701 2
NTB 16 120826 16
AXL 25 211082 0

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 $112 million. That figure was $35 million in CYS’s case. American Axle & Manufact. Holdings, Inc. (NYSE:AXL) is the most popular stock in this table. On the other hand AlarmCom Hldg Inc (NASDAQ:ALRM) is the least popular one with only 8 bullish hedge fund positions. CYS Investments Inc (NYSE:CYS) 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 AXL might be a better candidate to consider taking a long position in.

Disclosure: none.

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