Now, key hedge funds were leading the bulls’ herd. Driehaus Capital initiated the largest position in Student Transportation Inc (NASDAQ:STB). According to regulatory filings, the fund had $0.6 million invested in the company at the end of the quarter. Skylands Capital also initiated a $0.3 million position during the quarter.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Student Transportation Inc (NASDAQ:STB) but similarly valued. These stocks are First Trust High Income Long/short Fund (NYSE:FSD), Rudolph Technologies Inc (NYSE:RTEC), Unitil Corporation (NYSE:UTL), and Dynagas LNG Partners LP (NYSE:DLNG). All of these stocks’ market caps are closest to STB’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $43 million. That figure was $10 million in STB’s case. Rudolph Technologies Inc (NYSE:RTEC) is the most popular stock in this table. On the other hand First Trust High Income Long/short Fund (NYSE:FSD) is the least popular one with only 3 bullish hedge fund positions. Student Transportation Inc (NASDAQ:STB) 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 RTEC might be a better candidate to consider taking a long position in.