Is Cedar Fair, L.P. (FUN) a Good Stock to Buy?

As industrywide interest jumped, key money managers were leading the bulls’ herd. Charles Davidson’s Wexford Capital established the biggest position in Cedar Fair, L.P. (NYSE:FUN). Wexford Capital had $3.8 million invested in the company at the end of the quarter. Noam Gottesman’s GLG Partners also made a $2.4 million investment in the stock during the quarter. The following funds were also among the new FUN investors: Ken Griffin’s Citadel Investment Group, Stephen Loukas, David A. Lorber, Zachary George’s FrontFour Capital Group, and Paul Marshall and Ian Wace’s Marshall Wace LLP.

Let’s also examine hedge fund activity in other stocks similar to Cedar Fair, L.P. (NYSE:FUN). These stocks are ITT Corp (NYSE:ITT), Medidata Solutions Inc (NASDAQ:MDSO), Black Hills Corp (NYSE:BKH), and Methanex Corporation (USA) (NASDAQ:MEOH). All of these stocks’ market caps match FUN’s market cap.

As you can see these stocks had an average of 16 funds with bullish positions and the average amount invested in these stocks was $174 million. That figure was $161 million in FUN’s case. ITT Corp (NYSE:ITT) is the most popular stock in this table. On the other hand Black Hills Corp (NYSE:BKH) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Cedar Fair, L.P. (NYSE:FUN) is even less popular than BKH. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: none