Should You Add Travelzoo Inc. (TZOO) to Your Portfolio?

With a general bullishness amongst the heavyweights, key money managers were leading the bulls’ herd. Osmium Partners created the most valuable call position in Travelzoo Inc. (NASDAQ:TZOO). Chao Ku’s Nine Chapters Capital Management also made a $0.2 million investment in the stock during the quarter. The other funds with brand new TZOO positions are Ken Griffin’s Citadel Investment Group, and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Travelzoo Inc. (NASDAQ:TZOO) but similarly valued. We will take a look at Allot Communications Ltd. (NASDAQ:ALLT), Northrim BanCorp, Inc. (NASDAQ:NRIM), Owens Realty Mortgage Inc (NYSEMKT:ORM), and Rightside Group Ltd (NASDAQ:NAME). This group of stocks’ market values match TZOO’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ALLT 7 23432 -1
NRIM 6 22505 -1
ORM 4 16238 0
NAME 10 23261 4

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $21 million. That figure was $19 million in TZOO’s case. Rightside Group Ltd (NASDAQ:NAME) is the most popular stock in this table. On the other hand Owens Realty Mortgage Inc (NYSEMKT:ORM) is the least popular one with only 4 bullish hedge fund positions. Travelzoo Inc. (NASDAQ:TZOO) 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 NAME might be a better candidate to consider taking a long position in.

Disclosure: None