Is iKang Healthcare Group Inc (ADR) (KANG) A Good Stock To Buy?

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Now, key money managers have been driving this bullishness. Cliff Asness’ AQR Capital Management created the largest position in iKang Healthcare Group Inc (ADR) (NASDAQ:KANG). AQR Capital Management had $0.5 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $0.5 million investment in the stock during the quarter. The following funds were also among the new KANG investors: Citadel Investment Group and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as iKang Healthcare Group Inc (ADR) (NASDAQ:KANG) but similarly valued. These stocks are Foundation Medicine Inc (NASDAQ:FMI), Independent Bank Group Inc (NASDAQ:IBTX), Apptio Inc (NASDAQ:APTI), and Meridian Bioscience, Inc. (NASDAQ:VIVO). This group of stocks’ market caps are similar to KANG’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FMI 11 28333 3
IBTX 9 27629 -3
APTI 14 10673 14
VIVO 16 61352 -3

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 $32 million. That figure was $63 million in KANG’s case. Meridian Bioscience, Inc. (NASDAQ:VIVO) is the most popular stock in this table. On the other hand Independent Bank Group Inc (NASDAQ:IBTX) is the least popular one with only 9 bullish hedge fund positions. iKang Healthcare Group Inc (ADR) (NASDAQ:KANG) 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 VIVO might be a better candidate to consider taking a long position in.

Disclosure: None

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