Should You Buy DDR Corp (DDR)?

As aggregate interest increased, key money managers were breaking ground themselves. AEW Capital Management, managed by Jeffrey Furber, initiated the largest position in DDR Corp (NYSE:DDR). AEW Capital Management had $61.1 million invested in the company at the end of the quarter. Greg Poole’s Echo Street Capital Management also initiated a $19.1 million position during the quarter. The following funds were also among the new DDR investors: Chao Ku’s Nine Chapters Capital Management, David Costen Haley’s HBK Investments, and Matthew Tewksbury’s Stevens Capital Management.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as DDR Corp (NYSE:DDR) but similarly valued. We will take a look at Frontier Communications Corp (NASDAQ:FTR), CBOE Holdings, Inc (NASDAQ:CBOE), East West Bancorp, Inc. (NASDAQ:EWBC), and Realogy Holdings Corp (NYSE:RLGY). This group of stocks’ market values resemble DDR’s market value.

As you can see these stocks had an average of 31 hedge funds with bullish positions and the average amount invested in these stocks was $810 million. That figure was $232 million in DDR’s case. Realogy Holdings Corp (NYSE:RLGY) is the most popular stock in this table. On the other hand, CBOE Holdings, Inc (NASDAQ:CBOE) is the least popular one with only 19 bullish hedge fund positions. Compared to these stocks DDR Corp (NYSE:DDR), with 16 bullish hedge fund positions is even less popular than CBOE. To comprehend why the smart money isn’t behind this stock, further analyzes are needed. This doesn’t necessarily mean it is not a stock worth buying; it is also possible that investors find it overvalued because they weren’t considering the bullish thesis. In any case, more research is warranted.