Is Rayonier Inc. (RYN) Going To Burn These Hedge Funds?

As industrywide interest jumped, key money managers have been driving this bullishness. Impax Asset Management, led by Ian Simm, assembled the biggest position in Rayonier Inc. (NYSE:RYN). Impax Asset Management had $12.1 million invested in the company at the end of the quarter. Thomas Bailard’s Bailard Inc also made a $0.6 million investment in the stock during the quarter. The other funds with brand new RYN positions are Ken Griffin’s Citadel Investment Group, Israel Englander’s Millennium Management, and Matthew Tewksbury’s Stevens Capital Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Rayonier Inc. (NYSE:RYN) but similarly valued. We will take a look at Urban Outfitters, Inc. (NASDAQ:URBN), Take-Two Interactive Software, Inc. (NASDAQ:TTWO), Texas Roadhouse Inc (NASDAQ:TXRH), and Ubiquiti Networks Inc (NASDAQ:UBNT). All of these stocks’ market caps resemble RYN’s market cap.

As you can see these stocks had an average of 27 hedge funds with bullish positions and the average amount invested in these stocks was $490 million. That figure was $347 million in RYN’s case. Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is the most popular stock in this table. On the other hand Ubiquiti Networks Inc (NASDAQ:UBNT) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks Rayonier Inc. (NYSE:RYN) is even less popular than UBNT. 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. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Suggested Articles:
Best Smartphones With Removable Batteries
Easiest College Majors That Will Earn Your Money Back
Countries That Produce The Most Engineers

Disclosure: None