Smart Money Buying Into Xueda Education Group (ADR) (XUE)

Now, key money managers were leading the bulls’ herd. Napier Park Global Capital assembled the most valuable position in Xueda Education Group (ADR) (NYSE:XUE). Napier Park Global Capital had $0.7 million invested in the company at the end of the quarter. Emanuel J. Friedman’s EJF Capital also initiated a $0.7 million position during the quarter. The other funds with new positions in the stock are Matthew Hulsizer’s PEAK6 Capital Management, and Ken Griffin’s Citadel Investment Group.

Let’s now review hedge fund activity in other stocks similar to Xueda Education Group (ADR) (NYSE:XUE). These stocks are Arlington Asset Investment Corp (NYSE:AI), Wausau Paper Corp. (NYSE:WPP), Vimicro International Corporation (ADR) (NASDAQ:VIMC), and Build-A-Bear Workshop, Inc (NYSE:BBW). This group of stocks’ market valuations match Xueda Education Group’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AI 7 7147 0
WPP 17 116012 7
VIMC 5 9188 3
BBW 15 54221 -1

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 $47 million. That figure was $21 million in Xueda Education Group’s case. Wausau Paper Corp. (NYSE:WPP) is the most popular stock in this table. On the other hand Vimicro International Corporation (ADR) (NASDAQ:VIMC) is the least popular one with only 5 bullish hedge fund positions. Xueda Education Group (ADR) (NYSE:XUE) 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 Wausau Paper might be a better candidate to consider for a long position.