How DigitalGlobe Inc (DGI) Stacks Up Against Its Peers

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As aggregate interest increased, key hedge funds were leading the bulls’ herd. Zimmer Partners assembled the biggest position in DigitalGlobe Inc (NYSE:DGI). Zimmer Partners had $13.8 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also initiated a $5.5 million position during the quarter. The only other fund with a brand new DGI position is Andrew Weiss’s Weiss Asset Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as DigitalGlobe Inc (NYSE:DGI) but similarly valued. These stocks are Trex Company, Inc. (NYSE:TREX), Viavi Solutions Inc (NASDAQ:VIAV), Nelnet, Inc. (NYSE:NNI), and Herman Miller, Inc. (NASDAQ:MLHR). This group of stocks’ market caps are closest to DGI’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TREX 10 22569 3
VIAV 23 215214 2
NNI 9 51977 -6
MLHR 16 104315 -4

As you can see these stocks had an average of 14.5 hedge funds with bullish positions and the average amount invested in these stocks was $99 million. That figure was $187 million in DGI’s case. Viavi Solutions Inc (NASDAQ:VIAV) is the most popular stock in this table. On the other hand Nelnet, Inc. (NYSE:NNI) is the least popular one with only 9 bullish hedge fund positions. DigitalGlobe Inc (NYSE:DGI) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard VIAV might be a better candidate to consider taking a long position in.

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