Hillenbrand, Inc. (HI): Are Hedge Funds Right About This Stock?

As industrywide interest jumped, some big names were breaking ground themselves. Arrowstreet Capital, led by Peter Rathjens, Bruce Clarke and John Campbell, initiated the most outsized position in Hillenbrand, Inc. (NYSE:HI). Arrowstreet Capital had $1.3 million invested in the company at the end of the quarter. Neil Chriss’s Hutchin Hill Capital also made a $0.9 million investment in the stock during the quarter. The only other fund with a new position in the stock is Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s check out hedge fund activity in other stocks similar to Hillenbrand, Inc. (NYSE:HI). These stocks are Pebblebrook Hotel Trust (NYSE:PEB), Controladora Vuela Co Avcn SA CV (ADR) (NYSE:VLRS), Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD), and Finisar Corporation (NASDAQ:FNSR). This group of stocks’ market valuations are similar to HI’s market valuation.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $272 million. That figure was $49 million in HI’s case. Finisar Corporation (NASDAQ:FNSR) is the most popular stock in this table. On the other hand Pebblebrook Hotel Trust (NYSE:PEB) is the least popular one with only 7 bullish hedge fund positions. Hillenbrand, Inc. (NYSE:HI) 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 FNSR might be a better candidate to consider taking a long position in.

Disclosure: None