Should You Buy CBIZ, Inc. (CBZ)?

As aggregate interest increased, key hedge funds have jumped into CBIZ, Inc. (NYSE:CBZ) headfirst. GRT Capital Partners, led by Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk, established the most valuable position in CBIZ, Inc. (NYSE:CBZ). GRT Capital Partners had $0.3 million invested in the company at the end of the quarter. Peter Muller’s PDT Partners also made a $0.2 million investment in the stock during the quarter. The other funds with new positions in the stock are Neil Chriss’ Hutchin Hill Capital and Glenn Russell Dubin’s Highbridge Capital Management.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as CBIZ, Inc. (NYSE:CBZ) but similarly valued. These stocks are Oclaro, Inc. (NASDAQ:OCLR), Chase Corporation (NYSEAMEX:CCF), Applied Micro Circuits Corporation (NASDAQ:AMCC), and CalAmp Corp. (NASDAQ:CAMP). This group of stocks’ market valuations resemble CBZ’s market valuation.

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $105 million. That figure was $69 million in CBZ’s case. Oclaro, Inc. (NASDAQ:OCLR) is the most popular stock in this table. On the other hand Chase Corporation (NYSEAMEX:CCF) is the least popular one with only 8 bullish hedge fund positions. CBIZ, Inc. (NYSE:CBZ) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard OCLR might be a better candidate to consider taking a long position in.

Disclosure: None