Should You Buy Addus Homecare Corporation (ADUS)?

Now, key hedge funds were breaking ground themselves. Algert Coldiron Investors, managed by Peter Algert and Kevin Coldiron, assembled the most valuable position in Addus Homecare Corporation (NASDAQ:ADUS). Algert Coldiron Investors had $1 million invested in the company at the end of the quarter. Richard Driehaus’s Driehaus Capital also made a $0.5 million investment in the stock during the quarter. The following funds were also among the new ADUS investors: Neil Chriss’s Hutchin Hill Capital, Mike Vranos’s Ellington, and Joseph Edelman’s Perceptive Advisors.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Addus Homecare Corporation (NASDAQ:ADUS) but similarly valued. We will take a look at Teligent Inc (NASDAQ:TLGT), Campus Crest Communities Inc (NYSE:CCG), Stoneridge, Inc. (NYSE:SRI), and Servicesource International Inc (NASDAQ:SREV). This group of stocks’ market values match ADUS’s market value.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $76 million. That figure was $19 million in ADUS’s case. Stoneridge, Inc. (NYSE:SRI) is the most popular stock in this table. On the other hand Teligent Inc (NASDAQ:TLGT is the least popular one with only 10 bullish hedge fund positions. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.