As one would reasonably expect, some big names were leading the bulls’ herd. Two Sigma Advisors, managed by John Overdeck and David Siegel, assembled the most outsized position in HEICO Corporation (NYSE:HEI). Two Sigma Advisors had $3.3 million invested in the company at the end of the quarter. Millennium Management Subsidiary’s Green Arrow Capital Management also made a $2.4 million investment in the stock during the quarter. The following funds were also among the new HEI investors: Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Israel Englander’s Millennium Management, and David Costen Haley’s HBK Investments.
Let’s now take a look at hedge fund activity in other stocks similar to HEICO Corporation (NYSE:HEI). These stocks are Akorn, Inc. (NASDAQ:AKRX), Cepheid (NASDAQ:CPHD), IDACORP Inc (NYSE:IDA), and Apple Hospitality REIT Inc (NYSE:APLE). All of these stocks’ market caps resemble HEI’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $260 million, below the $408 million figure that hedge funds held in aggregate invested in HEI. Akorn, Inc. (NASDAQ:AKRX) is the most popular stock in this table. On the other hand, Apple Hospitality REIT Inc (NYSE:APLE) is the least popular one with only 5 bullish hedge fund positions. HEICO Corporation (NYSE:HEI) 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 AKRX might be a better candidate to consider a long position.