Now, key hedge funds have been driving this bullishness. Pentwater Capital Management, managed by Matthew Halbower, assembled the largest position in Nortek Inc (NASDAQ:NTK). Pentwater Capital Management had $2.5 million invested in the company at the end of the quarter. Peter Muller’s PDT Partners also initiated a $0.6 million position during the quarter. The following funds were also among the new NTK investors: Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital, Lawrence Sapanski’s Scoria Capital, and Steve Cohen’s Point72 Asset Management.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Nortek Inc (NASDAQ:NTK) but similarly valued. We will take a look at Tennant Company (NYSE:TNC), Knight Capital Group Inc. (NYSE:KCG), NewLink Genetics Corp (NASDAQ:NLNK), and Synergy Resources Corp (NYSEAMEX:SYRG). This group of stocks’ market valuations are closest to NTK’s market valuation.
|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 14 hedge funds with bullish positions and the average amount invested in these stocks was $92 million. That figure was $414 million in NTK’s case. Tennant Company (NYSE:TNC) is the most popular stock in this table, while NewLink Genetics Corp (NASDAQ:NLNK) is the least popular one with only 13 bullish hedge fund positions. Nortek Inc (NASDAQ:NTK) 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 TNC might be a better candidate to consider a long position.