Is Anworth Mortgage Asset Corporation (ANH) Going to Burn These Hedge Funds?

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As one would reasonably expect, key money managers were leading the bulls’ herd. Alyeska Investment Group initiated the biggest position in Anworth Mortgage Asset Corporation (NYSE:ANH). According to regulatory filings, the fund had $3.9 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also initiated a $0.6 million position during the quarter. The following funds were also among the new ANH investors: Brian Taylor’s Pine River Capital Management and Alec Litowitz and Ross Laser’s Magnetar Capital.

Let’s now review hedge fund activity in other stocks similar to Anworth Mortgage Asset Corporation (NYSE:ANH). These stocks are The Hackett Group, Inc. (NASDAQ:HCKT), American Vanguard Corp. (NYSE:AVD), State National Companies Inc (NASDAQ:SNC), and Westwood Holdings Group, Inc. (NYSE:WHG). This group of stocks’ market caps are similar to ANH’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
HCKT 16 36925 -1
AVD 10 31004 0
SNC 11 68148 0
WHG 5 74676 1

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $53 million. That figure was $30 million in ANH’s case. The Hackett Group, Inc. (NASDAQ:HCKT) is the most popular stock in this table. On the other hand Westwood Holdings Group, Inc. (NYSE:WHG) is the least popular one with only 5 bullish hedge fund positions. Anworth Mortgage Asset Corporation (NYSE:ANH) 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 HCKT might be a better candidate to consider taking a long position in.

Disclosure: None


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