Is Tronox Ltd (TROX) Worthy of Your Portfolio?

As one would reasonably expect, key hedge funds have been driving this bullishness. Scopus Asset Management, led by Alexander Mitchell, initiated the most valuable position in Tronox Ltd (NYSE:TROX). Scopus Asset Management had $4.7 million invested in the company at the end of the quarter. Neil Chriss’ Hutchin Hill Capital also made a $2.2 million investment in the stock during the quarter. The other funds with new positions in the stock are Glenn Russell Dubin’s Highbridge Capital Management, Ken Griffin’s Citadel Investment Group, and David Costen Haley’s HBK Investments.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Tronox Ltd (NYSE:TROX) but similarly valued. These stocks are Redwood Trust, Inc. (NYSE:RWT), Ascena Retail Group Inc (NASDAQ:ASNA), Caleres Inc (NYSE:CAL), and Standard Motor Products, Inc. (NYSE:SMP). This group of stocks’ market values are closest to TROX’s market value.

As you can see these stocks had an average of 17 investors with long positions and the average amount invested in these stocks was $129 million. That figure was $153 million in TROX’s case. Ascena Retail Group Inc (NASDAQ:ASNA) is the most popular stock in this table, while Standard Motor Products, Inc. (NYSE:SMP) is the least popular one with only 10 bullish hedge fund positions. Tronox Ltd (NYSE:TROX) 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 Ascena Retail Group Inc (NASDAQ:ASNA) might be a better candidate to consider taking a long position in.

Disclosure: none