Is Dycom Industries, Inc. (DY) Going to Burn These Hedge Funds?

Page 2 of 2

As aggregate interest increased, key hedge funds were leading the bulls’ herd. PAR Capital Management created the biggest position in Dycom Industries, Inc. (NYSE:DY). PAR Capital Management had $38 million invested in the company at the end of the quarter. Jim Simons’ Renaissance Technologies also made a $29.4 million investment in the stock during the quarter. The other funds with new positions in the stock are John Overdeck and David Siegel’s Two Sigma Advisors, Joel Greenblatt’s Gotham Asset Management, and Glenn Russell Dubin’s Highbridge Capital Management.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Dycom Industries, Inc. (NYSE:DY) but similarly valued. These stocks are Cornerstone OnDemand, Inc. (NASDAQ:CSOD), Performance Food Group Co (NYSE:PFGC), ENSCO PLC (NYSE:ESV), and Prestige Brands Holdings, Inc. (NYSE:PBH). This group of stocks’ market valuations match DY’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CSOD 29 400126 2
PFGC 14 30643 -1
ESV 33 555953 3
PBH 17 204942 -1

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $298 million. That figure was $505 million in DY’s case. ENSCO PLC (NYSE:ESV) is the most popular stock in this table. On the other hand Performance Food Group Co (NYSE:PFGC) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks Dycom Industries, Inc. (NYSE:DY) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None

Page 2 of 2