Here is What Hedge Funds Think About FactSet Research Systems Inc. (FDS)

As industrywide interest jumped, key hedge funds were breaking ground themselves. Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners assembled the largest position in FactSet Research Systems Inc. (NYSE:FDS). LMR Partners had $6.3 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $4.9 million investment in the stock during the quarter. The other funds with brand new FDS positions are Gregg Moskowitz’s Interval Partners, Simon Sadler’s Segantii Capital, and Paul Tudor Jones’ Tudor Investment Corp.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as FactSet Research Systems Inc. (NYSE:FDS) but similarly valued. These stocks are Nordstrom, Inc. (NYSE:JWN), Domino’s Pizza, Inc. (NYSE:DPZ), News Corp (NASDAQ:NWSA), and AerCap Holdings N.V. (NYSE:AER). This group of stocks’ market valuations are similar to FDS’s market valuation.

As you can see these stocks had an average of 32 investors with bullish positions and the average amount invested in these stocks was $938 million, which is higher than $280 million in FDS’s case. Domino’s Pizza, Inc. (NYSE:DPZ) is the most popular stock in this table. On the other hand Nordstrom, Inc. (NYSE:JWN) is the least popular one with only 30 bullish hedge fund positions. Compared to these stocks FactSet Research Systems Inc. (NYSE:FDS) is even less popular than Nordstrom, Inc. (NYSE:JWN). Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None