NN, Inc. (NNBR): Are Hedge Funds Right About This Stock?

Now, some big names have jumped into NN, Inc. (NASDAQ:NNBR) headfirst. AlphaOne Capital Partners, managed by Paul Hondros, assembled the largest position in NN, Inc. (NASDAQ:NNBR). AlphaOne Capital Partners had $3.4 million invested in the company at the end of the quarter. Edward Goodnow’s Goodnow Investment Group also made a $2.3 million investment in the stock during the quarter. The other funds with new positions in the stock are Peter Muller’s PDT Partners, Jim Simons’ Renaissance Technologies, and Chao Ku’s Nine Chapters Capital Management.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as NN, Inc. (NASDAQ:NNBR) but similarly valued. These stocks are Double Eagle Acqusition Corp (NASDAQ:EAGL), Xencor Inc (NASDAQ:XNCR), Carmike Cinemas, Inc. (NASDAQ:CKEC), and Mag Silver Corp (USA) (NYSEAMEX:MVG). This group of stocks’ market valuations match NNBR’s market valuation.

As you can see these stocks had an average of 19.25 hedge funds with bullish positions and the average amount invested in these stocks was $103 million. That figure was $59 million in NNBR’s case. Carmike Cinemas, Inc. (NASDAQ:CKEC) is the most popular stock in this table. On the other hand Mag Silver Corp (USA) (NYSEAMEX:MVG) is the least popular one with only 11 bullish hedge fund positions. NN, Inc. (NASDAQ:NNBR) 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 CKEC might be a better candidate to consider a long position.