Is HC2 Holdings Inc (HCHC) A Good Stock To Buy?

As aggregate interest increased, specific money managers have jumped into HC2 Holdings Inc (NYSEMKT:HCHC) headfirst. Renaissance Technologies, led by Jim Simons, created the biggest position in HC2 Holdings Inc (NYSEMKT:HCHC). Renaissance Technologies had $0.3 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also made a $0.3 million investment in the stock during the quarter. The following funds were also among the new HCHC investors: Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital and Israel Englander’s Millennium Management.

Let’s also examine hedge fund activity in other stocks similar to HC2 Holdings Inc (NYSEMKT:HCHC). We will take a look at Sterling Construction Company, Inc. (NASDAQ:STRL), Lifetime Brands Inc (NASDAQ:LCUT), Asterias Biotherapeutics Inc (NYSEMKT:AST), and Autobytel Inc. (NASDAQ:ABTL). All of these stocks’ market caps match HCHC’s market cap.

As you can see these stocks had an average of 7.25 hedge funds with bullish positions and the average amount invested in these stocks was $17 million. That figure was $20 million in HCHC’s case. Autobytel Inc. (NASDAQ:ABTL) is the most popular stock in this table. On the other hand Lifetime Brands Inc (NASDAQ:LCUT) is the least popular one with only 3 bullish hedge fund positions. HC2 Holdings Inc (NYSEMKT:HCHC) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ABTL might be a better candidate to consider taking a long position in.

Disclosure: None