Hedge Funds Are Still Buying Novanta Inc (USA) (NOVT)

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Now, specific money managers were leading the bulls’ herd. Cove Street Capital established the most outsized position in Novanta Inc (USA) (NASDAQ:NOVT). Ken Griffin’s Citadel Investment Group also initiated a $1 million position during the quarter. The other funds with new positions in the stock are Israel Englander’s Millennium Management and Peter Algert and Kevin Coldiron’s Algert Coldiron Investors.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Novanta Inc (USA) (NASDAQ:NOVT) but similarly valued. We will take a look at Altisource Portfolio Solutions S.A. (NASDAQ:ASPS), Mechel OAO (ADR) (NYSE:MTL), H&E Equipment Services, Inc. (NASDAQ:HEES), and Altisource Residential Corp (NYSE:RESI). All of these stocks’ market caps are similar to NOVT’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ASPS 17 102297 3
MTL 3 1299 0
HEES 14 30917 3
RESI 13 56390 7

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $48 million. That figure was $66 million in NOVT’s case. Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) is the most popular stock in this table. On the other hand Mechel OAO (ADR) (NYSE:MTL) is the least popular one with only 3 bullish hedge fund positions. Novanta Inc (USA) (NASDAQ:NOVT) 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 ASPS might be a better candidate to consider taking a long position in.

Disclosure: None

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