As industrywide interest jumped, some big names have been driving this bullishness. Welch Capital Partners, led by Leighton Welch, initiated the most valuable position in Argan, Inc. (NYSE:AGX). According to its latest 13F filing, the fund had $6.8 million invested in the company at the end of the quarter. Richard Driehaus’s Driehaus Capital also initiated a $5.6 million position during the quarter. The following funds were also among the new AGX investors: Chuck Royce’s Royce & Associates, George Hall’s Clinton Group, and Paul Marshall and Ian Wace’s Marshall Wace LLP.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Argan, Inc. (NYSE:AGX) but similarly valued. We will take a look at FelCor Lodging Trust Incorporated (NYSE:FCH), Cavco Industries, Inc. (NASDAQ:CVCO), Eros International plc (NYSE:EROS), and Noble Midstream Partners LP (NYSE:NBLX). All of these stocks’ market caps resemble AGX’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $89 million. That figure was $108 million in AGX’s case. FelCor Lodging Trust Incorporated (NYSE:FCH) is the most popular stock in this table. On the other hand Noble Midstream Partners LP (NYSE:NBLX) is the least popular one with only 4 bullish hedge fund positions. Argan, Inc. (NYSE:AGX) 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 FCH might be a better candidate to consider taking a long position in.