Is Invacare Corporation (IVC) Going to Burn These Hedge Funds?

Now, specific money managers were breaking ground themselves. Citadel Investment Group, led by Ken Griffin, established the most outsized position in Invacare Corporation (NYSE:IVC). Citadel Investment Group had $0.8 million invested in the company at the end of the quarter. Chao Ku’s Nine Chapters Capital Management also made a $0.2 million investment in the stock during the quarter. The only other fund with a new position in the stock is Joseph Edelman’s Perceptive Advisors.

Let’s now review hedge fund activity in other stocks similar to Invacare Corporation (NYSE:IVC). We will take a look at Medifast, Inc. (NYSE:MED), Western Asset Mortgage Capital Corp (NYSE:WMC), First Community Bancshares Inc (NASDAQ:FCBC), and Lion Biotechnologies Inc (NASDAQ:LBIO). All of these stocks’ market caps match IVC’s market cap.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $66 million. That figure was $79 million in IVC’s case. Lion Biotechnologies Inc (NASDAQ:LBIO) is the most popular stock in this table. On the other hand First Community Bancshares Inc (NASDAQ:FCBC) is the least popular one with only 4 bullish hedge fund positions. Invacare Corporation (NYSE:IVC) 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 LBIO might be a better candidate to consider taking a long position in.

Disclosure: None