As aggregate interest increased, key hedge funds were leading the bulls’ herd. Point72 Asset Management, managed by Steve Cohen, initiated the most valuable position in Sanderson Farms, Inc. (NASDAQ:SAFM). Point72 Asset Management had $5.4 million invested in the company at the end of the first quarter. Glenn Russell Dubin’s Highbridge Capital Management also made a $1.4 million investment in the stock during the quarter. The other funds with brand new SAFM positions are Paul Tudor Jones’s Tudor Investment Corp, Paul Tudor Jones’s Tudor Investment Corp, and Dmitry Balyasny’s Balyasny Asset Management.
Let’s check out hedge fund activity in other stocks similar to Sanderson Farms, Inc. (NASDAQ:SAFM). We will take a look at DiamondRock Hospitality Company (NYSE:DRH), CBL & Associates Properties, Inc. (NYSE:CBL), United Natural Foods, Inc. (NASDAQ:UNFI), and Superior Energy Services, Inc. (NYSE:SPN). This group of stocks’ market caps are similar to SAFM’s market cap.
|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 20 hedge funds with bullish positions and the average amount invested in these stocks was $151 million. That figure was $177 million in SAFM’s case. Superior Energy Services, Inc. (NYSE:SPN) is the most popular stock in this table. On the other hand DiamondRock Hospitality Company (NYSE:DRH) is the least popular one with only 12 bullish hedge fund positions. Sanderson Farms, Inc. (NASDAQ:SAFM) 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 SPN might be a better candidate to consider a long position.