Consequently, some big names have been driving this bullishness. Cupps Capital Management, managed by Drew Cupps, created the biggest position in New Relic Inc (NYSE:NEWR), worth an estimated $13.7 million at the end of the quarter. Clifford Fox’s Columbus Circle Investors also initiated a $12 million position during the quarter. The other funds with new positions in the stock are Leon Shaulov’s Maplelane Capital, D. E. Shaw’s D E Shaw, and Steve Cohen’s Point72 Asset Management.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as New Relic Inc (NYSE:NEWR) but similarly valued. We will take a look at Dorman Products Inc. (NASDAQ:DORM), American Equity Investment Life Holding (NYSE:AEL), GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH), and Columbia Banking System Inc (NASDAQ:COLB). This group of stocks’ market values resemble NEWR’s market value.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $174 million. That figure was $239 million in NEWR’s case, a good sign. American Equity Investment Life Holding (NYSE:AEL) is the most popular stock in this table, whereas Dorman Products Inc. (NASDAQ:DORM) is the least popular one with only 9 bullish hedge fund positions. New Relic Inc (NYSE:NEWR) is not the most popular stock in this group, but hedge fund interest is still above average. Although this is a slightly positive signal, we’d rather spend our time researching stocks that hedge funds are piling on. In this regard AEL might be a better candidate to consider a long position.