Is Exa Corp (EXA) A Good Stock To Buy?

Page 2 of 2

As aggregate interest increased, some big names were leading the bulls’ herd. Arrowstreet Capital initiated the biggest position in Exa Corp (NASDAQ:EXA). Arrowstreet Capital had $1 million invested in the company at the end of the quarter. Millennium Management also initiated a $0.4 million position during the quarter. The only other fund with a new position in the stock is Two Sigma Advisors.

Let’s check out hedge fund activity in other stocks similar to Exa Corp (NASDAQ:EXA). These stocks are KongZhong Corporation(ADR) (NASDAQ:KZ), Orchid Island Capital Inc (NYSE:ORC), Immersion Corporation (NASDAQ:IMMR), and Ardmore Shipping Corp (NYSE:ASC). This group of stocks’ market valuations are closest to EXA’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
KZ 3 6615 0
ORC 4 9936 4
IMMR 14 101608 -6
ASC 10 12732 4

As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $33 million. That figure was $22 million in EXA’s case. Immersion Corporation (NASDAQ:IMMR) is the most popular stock in this table. On the other hand KongZhong Corporation(ADR) (NASDAQ:KZ) is the least popular one with only 3 bullish hedge fund positions. Exa Corp (NASDAQ:EXA) 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 IMMR might be a better candidate to consider taking a long position in.

Disclosure: None

Page 2 of 2