Here is What Hedge Funds Think About Open Text Corporation (USA) (OTEX)

Page 2 of 2

Consequently, specific money managers were leading the bulls’ herd. Venator Capital Management, managed by Brandon Osten, assembled the largest position in Open Text Corporation (USA) (NASDAQ:OTEX). Venator Capital Management had $4.7 million invested in the company at the end of the quarter. Andre F. Perold’s HighVista Strategies also initiated a $2.9 million position during the third quarter. The other funds with brand new OTEX positions are David Charney and Sky Wilber’s Foundation Asset Management and Ken Griffin’s Citadel Investment Group.

Let’s go over hedge fund activity in other stocks similar to Open Text Corporation (USA) (NASDAQ:OTEX). These stocks are Western Gas Partners, LP (NYSE:WES), ITC Holdings Corp. (NYSE:ITC), Ashland Inc. (NYSE:ASH), and Huntington Bancshares Incorporated (NASDAQ:HBAN). All of these stocks’ market caps are closest to OTEX’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
WES 8 35122 3
ITC 35 1770861 0
ASH 30 726535 4
HBAN 32 463093 1

As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $749 million. That figure was $186 million in OTEX’s case. ITC Holdings Corp. (NYSE:ITC) is the most popular stock in this table. On the other hand Western Gas Partners, LP (NYSE:WES) is the least popular one with only eight funds holding shares. Open Text Corporation (USA) (NASDAQ:OTEX) 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 ITC Holdings Corp. (NYSE:ITC) might be a better candidate to consider a long position.

Page 2 of 2