Should You Add Career Education Corp. (CECO) to Your Portfolio?

Now, key money managers were leading the bulls’ herd. Israel Englander’s Millennium Management initiated the biggest position in Career Education Corp. (NASDAQ:CECO). Millennium Management had $0.6 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also made a $0.5 million investment in the stock during the quarter. The other funds with brand new CECO positions are John Overdeck and David Siegel’s Two Sigma Advisors, Neil Chriss’ Hutchin Hill Capital, and Joel Greenblatt’s Gotham Asset Management.

Let’s go over hedge fund activity in other stocks similar to Career Education Corp. (NASDAQ:CECO). These stocks are Cascade Bancorp (NASDAQ:CACB), Forestar Group Inc. (NYSE:FOR), Ashford Hospitality Prime Inc (NYSE:AHP), and World Acceptance Corp. (NASDAQ:WRLD). This group of stocks’ market caps are similar to CECO’s market cap.

As you can see these stocks had an average of 12 funds with bullish positions and the average amount invested in these stocks was $96 million. That figure was $62 million in CECO’s case. Forestar Group Inc. (NYSE:FOR) is the most popular stock in this table. On the other hand Cascade Bancorp (NASDAQ:CACB) is the least popular one with only nine investors having reported long positions. Compared to these stocks Career Education Corp. (NASDAQ:CECO) is more popular among hedge funds. Considering that hedge funds 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.

Disclosure: None