Is Scholastic Corp (SCHL) Going to Burn These Hedge Funds?

As industrywide interest jumped, key money managers were leading the bulls’ herd. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, initiated the largest position in Scholastic Corp (NASDAQ:SCHL) valued at $4 million at the end of the quarter. D. E. Shaw’s D E Shaw also made a $2.8 million investment in the stock during the quarter. The other funds with new positions in the stock are Israel Englander’s Millennium Management, David Costen Haley’s HBK Investments, and Matthew Tewksbury’s Stevens Capital Management.

Let’s now review hedge fund activity in other stocks similar to Scholastic Corp (NASDAQ:SCHL). These stocks are Caleres Inc (NYSE:CAL), FibroGen Inc (NASDAQ:FGEN), Halyard Health Inc (NYSE:HYH), and Hub Group Inc (NASDAQ:HUBG). This group of stocks’ market valuations are closest to SCHL’s market valuation.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $143 million. That figure was $137 million in SCHL’s case. Caleres Inc (NYSE:CAL) is the most popular stock in this table. On the other hand Hub Group Inc (NASDAQ:HUBG) is the least popular one with only 12 bullish hedge fund positions. With 17 long hedge fund positions, Scholastic Corp (NASDAQ:SCHL) is on par with CAL. This is a slightly positive signal, but the amount invested in the company is below the average in the group and we believe more research is necessary to decide whether SCHL is a good candidate for a long position.