Consequently, some big names have been driving this bullishness. Glenn Russell Dubin of Highbridge Capital Management established the most valuable position in KMG Chemicals, Inc. (NYSE:KMG). Highbridge Capital Management had $0.4 million invested in the company at the end of the quarter.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as KMG Chemicals, Inc. (NYSE:KMG) but similarly valued. These stocks are ChannelAdvisor Corp (NYSE:ECOM), Pacific Continental Corporation (NASDAQ:PCBK), Aratana Therapeutics Inc (NASDAQ:PETX), and United Community Financial Corp (NASDAQ:UCFC). All of these stocks’ market caps are similar to KMG’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ECOM | 10 | 14011 | 1 |
| PCBK | 5 | 28697 | 0 |
| PETX | 17 | 41648 | 8 |
| UCFC | 8 | 33765 | 0 |
As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $30 million. That figure was $66 million in KMG’s case. Aratana Therapeutics Inc (NASDAQ:PETX) is the most popular stock in this table. On the other hand Pacific Continental Corporation (NASDAQ:PCBK) is the least popular one with only 5 bullish hedge fund positions. KMG Chemicals, Inc. (NYSE:KMG) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard PETX might be a better candidate to consider taking a long position in.
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Disclosure: None
