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Is Celadon Group, Inc. (CGI) A Good Stock To Buy?

Seeing as Celadon Group, Inc. (NYSE:CGI) has experienced falling interest from the aggregate hedge fund industry, it’s easy to see that there is a sect of funds that elected to cut their positions entirely heading into Q4. Intriguingly, Paul Marshall and Ian Wace’s Marshall Wace LLP said goodbye to the biggest investment of all the hedgies monitored by Insider Monkey, totaling close to $3 million in stock, and Richard S. Meisenberg’s ACK Asset Management was right behind this move, as the fund dropped about $0.7 million worth of CGI shares. These moves are interesting, as total hedge fund interest fell by 2 funds heading into Q4.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Celadon Group, Inc. (NYSE:CGI) but similarly valued. These stocks are Farmer Brothers Co. (NASDAQ:FARM), Investment Technology Group (NYSE:ITG), ANI Pharmaceuticals Inc (NASDAQ:ANIP), and Lattice Semiconductor (NASDAQ:LSCC). All of these stocks’ market caps are similar to CGI’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FARM 15 73781 6
ITG 18 54540 1
ANIP 13 54159 -4
LSCC 8 51731 -5

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $59 million. That figure was a disappointing $27 million in CGI’s case. Investment Technology Group (NYSE:ITG) is the most popular stock in this table, while Lattice Semiconductor (NASDAQ:LSCC) is at the other end of the specter with only 8 bullish hedge fund positions. Celadon Group, Inc. (NYSE:CGI) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, yet we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ITG might be a better candidate to consider a long position.

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