Here is What Hedge Funds Think About KMG Chemicals, Inc. (KMG)

With a general bullishness amongst the heavyweights, some big names have jumped into KMG Chemicals, Inc. (NYSE:KMG) headfirst. Peter Algert and Kevin Coldiron’s Algert Coldiron Investors initiated the most outsized position in KMG Chemicals, Inc. (NYSE:KMG). Algert Coldiron Investors had $0.9 million invested in the company at the end of the quarter. Chao Ku’s Nine Chapters Capital Management also made a $0.2 million investment in the stock during the quarter.

Let’s now take a look at hedge fund activity in other stocks similar to KMG Chemicals, Inc. (NYSE:KMG). These stocks are Nutraceutical Int’l Corp. (NASDAQ:NUTR), Fidus Investment Corp (NASDAQ:FDUS), FuelCell Energy, Inc. (NASDAQ:FCEL), and Nature’s Sunshine Prod. (NASDAQ:NATR). This group of stocks’ market valuations resemble KMG’s market valuation.

As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $29 million. That figure was $39 million in KMG’s case. FuelCell Energy, Inc. (NASDAQ:FCEL) is the most popular stock in this table with eight funds holding shares. On the other hand Nutraceutical Int’l Corp. (NASDAQ:NUTR) is the least popular one. Compared to these stocks KMG Chemicals, Inc. (NYSE:KMG) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.