Hedge Funds Are Crazy About LSI Industries, Inc. (LYTS)

With a general bullishness amongst the heavyweights, some big names were leading the bulls’ herd. Algert Coldiron Investors created the biggest position in LSI Industries, Inc. (NASDAQ:LYTS), having $1.2 million invested in the company at the end of the quarter. Peter Muller’s PDT Partners also initiated a $0.2 million position during the quarter. The only other fund with a brand new LYTS position is Ken Griffin’s Citadel Investment Group.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as LSI Industries, Inc. (NASDAQ:LYTS) but similarly valued. We will take a look at Sequenom, Inc. (NASDAQ:SQNM), Charter Financial Corp (NASDAQ:CHFN), Hennessy Capital Acquisition Corp (NASDAQ:BLBD), and Tribune Publishing Co (NYSE:TPUB). This group of stocks’ market values match LYTS’s market value.

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $44 million. That figure was $28 million in LYTS’s case. Sequenom, Inc. (NASDAQ:SQNM) is the most popular stock in this table. On the other hand Hennessy Capital Acquisition Corp (NASDAQ:BLBD) is the least popular one with only 7 bullish hedge fund positions. LSI Industries, Inc. (NASDAQ:LYTS) 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 SQNM might be a better candidate to consider a long position.