Is Acxiom Corporation (ACXM) Going to Burn These Hedge Funds?

Now, key hedge funds were leading the bulls’ herd. RGM Capital, managed by Robert G. Moses, created the largest position in Acxiom Corporation (NASDAQ:ACXM), worth an estimated $30.5 million at the end of the quarter. Lee Hicks and Jan Koerner’s Park Presidio Capital also made a $25.1 million investment in the stock during the quarter. The other funds with brand new ACXM positions are Joseph A. Jolson’s Harvest Capital Strategies, Peter Muller’s PDT Partners, and Chao Ku’s Nine Chapters Capital Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Acxiom Corporation (NASDAQ:ACXM) but similarly valued. We will take a look at Advanced Drainage Systems Inc (NYSE:WMS), Revlon Inc (NYSE:REV), American States Water Co (NYSE:AWR), and Greif, Inc. (NYSE:GEF). All of these stocks’ market caps resemble ACXM’s market cap.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $131 million. In the case of ACXM, that figure significantly exceeds the average and stands at $252 million. Greif, Inc. (NYSE:GEF) is the most popular stock in this table. On the other hand American States Water Co (NYSE:AWR) is the least popular one with only 5 bullish hedge fund positions. Acxiom Corporation (NASDAQ:ACXM) 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 GEF might be a better candidate to consider a long position.