Is DuPont Fabros Technology, Inc. (DFT) A Good Stock To Buy?

As one would reasonably expect, specific money managers were breaking ground themselves. Alyeska Investment Group, managed by Anand Parekh, established the most outsized position in DuPont Fabros Technology, Inc. (NYSE:DFT). Alyeska Investment Group had $7.4 million invested in the company at the end of the quarter. Thomas Bailard’s Bailard Inc also made a $0.7 million investment in the stock during the quarter. The other funds with new positions in the stock are George Hall’s Clinton Group, Jacob Gottlieb’s Visium Asset Management, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s now take a look at hedge fund activity in other stocks similar to DuPont Fabros Technology, Inc. (NYSE:DFT). We will take a look at Planet Fitness Inc (NYSE:PLNT), Healthequity Inc (NASDAQ:HQY), Mack Cali Realty Corp (NYSE:CLI), and Matson Inc (NYSE:MATX). This group of stocks’ market caps match DFT’s market cap.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $79 million, compared to $173 million in DFT’s case. Mack Cali Realty Corp (NYSE:CLI) is the most popular stock in this table. On the other hand Healthequity Inc (NASDAQ:HQY) is the least popular one with only 13 bullish hedge fund positions. DuPont Fabros Technology, Inc. (NYSE:DFT) 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 CLI might be a better candidate to consider a long position.