Is Kaiser Aluminum Corp. (KALU) A Good Stock To Buy?

With a general bullishness amongst the heavyweights, specific money managers were leading the bulls’ herd. Point72 Asset Management, managed by Steve Cohen, established the largest position in Kaiser Aluminum Corp. (NASDAQ:KALU). Point72 Asset Management had $4 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP also initiated a $1.5 million position during the quarter. The other funds with new positions in the stock are Joel Greenblatt’s Gotham Asset Management, Lee Munder’s Lee Munder Capital Group, and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s now take a look at hedge fund activity in other stocks similar to Kaiser Aluminum Corp. (NASDAQ:KALU). We will take a look at Homeinns Hotel Group (ADR) (NASDAQ:HMIN), AMAG Pharmaceuticals, Inc. (NASDAQ:AMAG), Stratasys, Ltd. (NASDAQ:SSYS), and Rambus Inc. (NASDAQ:RMBS). This group of stocks’ market valuations resembles Kaiser Aluminum Corp. (NASDAQ:KALU)’s market valuation.

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 $169 million. That figure was $161 million in Kaiser Aluminum Corp. (NASDAQ:KALU)’s case. AMAG Pharmaceuticals, Inc. (NASDAQ:AMAG) is the most popular stock in this table. On the other hand, Homeinns Hotel Group (ADR) (NASDAQ:HMIN) is the least popular one with only 7 bullish hedge fund positions. Kaiser Aluminum Corp. (NASDAQ:KALU) 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, AMAG Pharmaceuticals, Inc. (NASDAQ:AMAG) might be a better candidate to consider a long position.