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Should You Buy Radian Group Inc (RDN)?

As industrywide interest jumped, key hedge funds have jumped into Radian Group Inc (NYSE:RDN) headfirst. Stevens Capital Management, managed by Matthew Tewksbury, established the most outsized position in Radian Group Inc (NYSE:RDN). Stevens Capital Management had $3.4 million invested in the company at the end of the quarter. Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital also initiated a $1.5 million position during the quarter. The following funds were also among the new RDN investors: George Hall’s Clinton Group, Jacob Gottlieb’s Visium Asset Management, and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s check out hedge fund activity in other stocks similar to Radian Group Inc (NYSE:RDN). We will take a look at Corelogic Inc (NYSE:CLGX), ENSCO PLC (NYSE:ESV), First Horizon National Corporation (NYSE:FHN), and AngloGold Ashanti Limited (ADR) (NYSE:AU). This group of stocks’ market values are closest to RDN’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CLGX 29 374931 2
ESV 29 297553 7
FHN 16 166123 -2
AU 15 495127 -3

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $333 million. That figure was $864 million in RDN’s case. Corelogic Inc (NYSE:CLGX) and ENSCO PLC (NYSE:ESV) are the most popular stocks in this table with a total of 29 funds reporting long positions. On the other hand AngloGold Ashanti Limited (ADR) (NYSE:AU) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks Radian Group Inc (NYSE:RDN) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

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