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Is Innophos Holdings, Inc. (IPHS) Going to Burn These Hedge Funds?

As aggregate interest increased, key hedge funds were leading the bulls’ herd. Hutchin Hill Capital, managed by Neil Chriss, created the most valuable position in Innophos Holdings, Inc. (NASDAQ:IPHS). Hutchin Hill Capital had $1.3 million invested in the company at the end of the quarter. Peter Muller’s PDT Partners also made a $1.1 million investment in the stock during the quarter. The other funds with new positions in the stock are David Costen Haley’s HBK Investments, Matthew Tewksbury’s Stevens Capital Management, and Joel Greenblatt’s Gotham Asset Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Innophos Holdings, Inc. (NASDAQ:IPHS) but similarly valued. We will take a look at Saia Inc (NASDAQ:SAIA), Atento SA (NYSE:ATTO), HMS Holdings Corp. (NASDAQ:HMSY), and Calavo Growers, Inc. (NASDAQ:CVGW). This group of stocks’ market valuations is similar to Innophos Holdings, Inc. (NASDAQ:IPHS)’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SAIA 20 162892 9
ATTO 5 28862 -2
HMSY 25 85073 14
CVGW 18 31164 2

As you can see, these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $77 million. That figure was $69 million in Innophos Holdings, Inc. (NASDAQ:IPHS)’s case. HMS Holdings Corp. (NASDAQ:HMSY) is the most popular stock in this table. On the other hand Atento SA (NYSE:ATTO) is the least popular one with only 5 bullish hedge fund positions. Innophos Holdings, Inc. (NASDAQ:IPHS) 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, HMS Holdings Corp. (NASDAQ:HMSY) might be a better candidate to consider a long position.

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