Is Granite Construction Inc. (GVA) Going to Burn These Hedge Funds?

As aggregate interest increased, key money managers were breaking ground themselves. Point72 Asset Management, managed by Steve Cohen, created the largest position in Granite Construction Inc. (NYSE:GVA), worth approximately $24.3 million at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also made a $1.3 million investment in the stock during the quarter. The following funds were also among the new GVA investors: Ken Gray and Steve Walsh’s Bryn Mawr Capital, Michael Platt and William Reeves’s BlueCrest Capital Mgmt., and Chao Ku’s Nine Chapters Capital Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Granite Construction Inc. (NYSE:GVA) but similarly valued. We will take a look at Potlatch Corporation (NASDAQ:PCH), Hyster-Yale Materials Handling Inc (NYSE:HY), Children’s Place Retail Stores, Inc. (NASDAQ:PLCE), and Milacron Holdings Corp (NYSE:MCRN). All of these stocks’ market caps are closest to GVA’s market cap.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $89 million. That figure was just $59 million in GVA’s case. Potlatch Corporation (NASDAQ:PCH) and Hyster-Yale Materials Handling Inc (NYSE:HY) have both attracted the attention of 13 elite funds, while Children’s Place Retail Stores, Inc. (NASDAQ:PLCE) and Milacron Holdings Corp (NYSE:MCRN) can be found in the portfolios of 11 top funds. With 17 long hedge fund positions, Granite Construction Inc. (NYSE:GVA) clearly outshines the lot. 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.