Now, key money managers have been driving this bullishness. EJF Capital, managed by Emanuel J. Friedman, created the most outsized position in New Residential Investment Corp (NYSE:NRZ). EJF Capital had $43.7 million invested in the company at the end of the quarter. Philip Hempleman’s Ardsley Partners also made a $7.6 million investment in the stock during the quarter. The other funds with new positions in the stock are David Rodriguez-Fraile’s BlueMar Capital Management, Paul Marshall and Ian Wace’s Marshall Wace LLP, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as New Residential Investment Corp (NYSE:NRZ) but similarly valued. These stocks are Energizer Holdings, Inc. (NYSE:ENR), Sensient Technologies Corporation (NYSE:SXT), ALLETE Inc (NYSE:ALE), and Universal Display Corporation (NASDAQ:OLED). All of these stocks’ market caps resemble NRZ’s market cap.
|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 16.75 hedge funds with bullish positions and the average amount invested in these stocks was $157 million. That figure was $219 million in NRZ’s case. Energizer Holdings, Inc. (NYSE:ENR) is the most popular stock in this table. On the other hand ALLETE Inc (NYSE:ALE) is the least popular one with only 11 bullish hedge fund positions. New Residential Investment Corp (NYSE:NRZ) 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 ENR might be a better candidate to consider a long position.