Should You Buy Houlihan Lokey Inc (HLI)?

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Now, key money managers have jumped into Houlihan Lokey Inc (NYSE:HLI) headfirst. Royce & Associates created the largest position in Houlihan Lokey Inc (NYSE:HLI). Jim Simons’ Renaissance Technologies also initiated a $0.7 million position during the quarter. The only other fund with a new position in the stock is Ken Griffin’s Citadel Investment Group.

Let’s go over hedge fund activity in other stocks similar to Houlihan Lokey Inc (NYSE:HLI). We will take a look at OM Asset Management PLC (NYSE:OMAM), ExlService Holdings, Inc. (NASDAQ:EXLS), USANA Health Sciences, Inc. (NYSE:USNA), and Core-Mark Holding Company, Inc. (NASDAQ:CORE). All of these stocks’ market caps are similar to HLI’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
OMAM 12 63974 1
EXLS 8 56257 -5
USNA 14 142282 1
CORE 14 57732 -3

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 $80 million. That figure was $56 million in HLI’s case. USANA Health Sciences, Inc. (NYSE:USNA) is the most popular stock in this table. On the other hand ExlService Holdings, Inc. (NASDAQ:EXLS) is the least popular one with only 8 bullish hedge fund positions. Houlihan Lokey Inc (NYSE:HLI) 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 USNA might be a better candidate to consider taking a long position in.

Disclosure: None

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