Hedge Funds Are Crazy About Reading International, Inc. (RDI)

With a general bullishness amongst the heavyweights, some big names were breaking ground themselves. Yacktman Asset Management established the most valuable position in Reading International, Inc. (NASDAQ:RDI). Yacktman Asset Management had $0.2 million invested in the company at the end of the quarter. Millennium Management also initiated a $0.2 million position during the quarter. The only other fund with a brand new RDI position is Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s now take a look at hedge fund activity in other stocks similar to Reading International, Inc. (NASDAQ:RDI). These stocks are Aralez Pharmaceuticals Inc (NASDAQ:ARLZ), City Office REIT Inc (NYSE:CIO), Lionbridge Technologies, Inc. (NASDAQ:LIOX), and Novan Inc (NASDAQ:NOVN). This group of stocks’ market valuations are similar to RDI’s market valuation.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $51 million. That figure was $15 million in RDI’s case. Aralez Pharmaceuticals Inc (NASDAQ:ARLZ) is the most popular stock in this table. On the other hand Novan Inc (NASDAQ:NOVN) is the least popular one with only 5 bullish hedge fund positions. Reading International, Inc. (NASDAQ:RDI) 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 ARLZ might be a better candidate to consider taking a long position in.

Disclosure: None