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NutriSystem Inc. (NTRI): Are Hedge Funds Right About This Stock?

As one would reasonably expect, key money managers have jumped into NutriSystem Inc. (NASDAQ:NTRI) headfirst. Millennium Management, run by Israel Englander, assembled the biggest position in NutriSystem Inc. (NASDAQ:NTRI). Millennium Management had $11 million invested in the company at the end of the September. Joel Greenblatt’s Gotham Asset Management also made a $0.9 million investment in the stock during the quarter. The other funds with brand new NTRI positions are Paul Tudor Jones’s Tudor Investment Corp, Glenn Russell Dubin’s Highbridge Capital Management, and Peter Algert and Kevin Coldiron’s Algert Coldiron Investors.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as NutriSystem Inc. (NASDAQ:NTRI) but similarly valued. These stocks are Central Garden & Pet Co (NASDAQ:CENT), Astec Industries, Inc. (NASDAQ:ASTE), DHX Media Ltd (USA) (NASDAQ:DHXM), and Relypsa Inc (NASDAQ:RLYP). This group of stocks’ market caps are similar to NTRI’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CENT 20 102629 4
ASTE 12 85829 -2
DHXM 5 140343 -1
RLYP 25 311230 -3

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $160 million. That figure was $147 million in NTRI’s case, not a very good sign. Relypsa Inc (NASDAQ:RLYP) is the most popular stock in this table, whereas DHX Media Ltd (USA) (NASDAQ:DHXM) is the least popular one with only 5 bullish hedge fund positions. NutriSystem Inc. (NASDAQ:NTRI) is the superstar of this mix, having attracted the attention of 27 hedgies. Considering that investors are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

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