Is Rentech, Inc. (RTK) A Good Stock To Buy According To Hedge Funds?

Since Rentech, Inc. (NASDAQ:RTK) has gone through bearish sentiment from the aggregate hedge fund industry, logic holds that there were a few funds that slashed their full holdings in the third quarter. At the top of the heap, Philip Hempleman’s Ardsley Partners cashed in the biggest investment of the “upper crust” of funds watched by Insider Monkey, valued at an estimated $0.2 million in stock. Ben Levine, Andrew Manuel and Stefan Renold’s fund, LMR Partners, also said goodbye to its stock, about $0.1 million worth.

Let’s go over hedge fund activity in other stocks similar to Rentech, Inc. (NASDAQ:RTK). These stocks are Vericel Corp (NASDAQ:VCEL), Intec Pharma Ltd (NASDAQ:NTEC), Vermillion, Inc. (NASDAQ:VRML), and Comstock Mining, Inc. (NYSEMKT:LODE). This group of stocks’ market values are similar to RTK’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
VCEL 5 9663 -1
NTEC 4 8843 0
VRML 4 4183 1
LODE 2 3745 -2

As you can see these stocks had an average of 4 hedge funds with bullish positions and the average amount invested in these stocks was $7 million. That figure was $13 million in RTK’s case. Vericel Corp (NASDAQ:VCEL) is the most popular stock in this table. On the other hand Comstock Mining, Inc. (NYSEMKT:LODE) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks Rentech, Inc. (NASDAQ:RTK) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.