Is Pzena Investment Management, Inc. (PZN) A Good Stock to Buy?

As aggregate interest increased, key hedge funds were leading the bulls’ herd. Millennium Management assembled the biggest position in Pzena Investment Management, Inc. (NYSE:PZN). Millennium Management had $0.1 million invested in the company at the end of the quarter. Citadel Investment Group also made a $0.1 million investment in the stock during the quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Pzena Investment Management, Inc. (NYSE:PZN) but similarly valued. We will take a look at Strayer Education Inc (NASDAQ:STRA), Meta Financial Group Inc. (NASDAQ:CASH), SunCoke Energy, Inc (NYSE:SXC), and InnerWorkings, Inc. (NASDAQ:INWK). This group of stocks’ market valuations are closest to PZN’s market valuation.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $89 million. That figure was just $5 million in PZN’s case. Meta Financial Group Inc. (NASDAQ:CASH) is the most popular stock in this table. On the other hand Strayer Education Inc (NASDAQ:STRA) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Pzena Investment Management, Inc. (NYSE:PZN) is even less popular than STRA. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock.

Disclosure: None