As one would reasonably expect, key money managers were leading the bulls’ herd. Renaissance Technologies, managed by Jim Simons, established the most outsized position in RR Donnelley & Sons Co (NASDAQ:RRD). The fund had reported a $5.6 million investment in the company at the end of the quarter. Neil Chriss’s Hutchin Hill Capital also made a $3.2 million investment in the stock during the quarter. The other funds with brand new RRD positions are Edward Goodnow’s Goodnow Investment Group, Andrew Grossman and Michael Levitt’s LG Capital Management, and Ray Dalio’s Bridgewater Associates.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as RR Donnelley & Sons Co (NASDAQ:RRD) but similarly valued. These stocks are FEI Company (NASDAQ:FEIC), Catalent Inc (NYSE:CTLT), HSN, Inc. (NASDAQ:HSNI), and New Residential Investment Corp (NYSE:NRZ). This group of stocks’ market values are closest to RRD’s market value.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $226 million. That figure was $112 million in RRD’s case. New Residential Investment Corp (NYSE:NRZ) is the most popular stock in this table, while HSN, Inc. (NASDAQ:HSNI) is at the other end of the specter with only 10 bullish hedge fund positions. RR Donnelley & Sons Co (NASDAQ:RRD) is not the most popular stock in this group, but hedge fund interest is still above average. While this is a slightly positive signal, we’d rather spend our time researching stocks that hedge funds are piling on. In this regard NRZ might be a better candidate to consider a long position.