Is Celadon Group, Inc. (CGI) Going to Burn These Hedge Funds?

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Consequently, specific money managers were leading the bulls’ herd. Scopus Asset Management assembled the largest position in Celadon Group, Inc. (NYSE:CGI), followed by Ken Griffin’s Citadel Investment Group. The other funds with brand new CGI positions are Royce & Associates, Renaissance Technologies, and Neil Chriss’s Hutchin Hill Capital.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Celadon Group, Inc. (NYSE:CGI) but similarly valued. We will take a look at Natural Grocers by Vitamin Cottage Inc (NYSE:NGVC), Landcadia Holdings Inc. (NASDAQ:LCAHU), Easterly Acquisition Corp (NASDAQ:EACQ), and Hovnanian Enterprises, Inc. (NYSE:HOV). All of these stocks’ market caps resemble CGI’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NGVC 6 10658 1
LCAHU 14 158796 2
EACQ 11 78069 0
HOV 10 13243 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 $65 million. That figure was $13 million in CGI’s case. Landcadia Holdings Inc. (NASDAQ:LCAHU) is the most popular stock in this table. On the other hand Natural Grocers by Vitamin Cottage Inc (NYSE:NGVC) is the least popular one with only 6 bullish hedge fund positions. Celadon Group, Inc. (NYSE:CGI) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard LCAHU might be a better candidate to consider taking a long position in.

Disclosure: None

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