Is Care.com Inc (CRCM) A Good Stock for Your Portfolio?

Page 2 of 2

Now, some big names have jumped into Care.com Inc (NYSE:CRCM) headfirst. Hutchin Hill Capital, led by Neil Chriss, assembled the most valuable position in Care.com Inc (NYSE:CRCM). Hutchin Hill Capital had $0.3 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also made a $0.2 million investment in the stock during the quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Care.com Inc (NYSE:CRCM) but similarly valued. We will take a look at America’s Car-Mart, Inc. (NASDAQ:CRMT), NVE Corporation (NASDAQ:NVEC), Foamix Pharmaceuticals Ltd (NASDAQ:FOMX), and PHI Inc. (NASDAQ:PHIIK). This group of stocks’ market valuations are similar to CRCM’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CRMT 7 82666 1
NVEC 5 29834 0
FOMX 18 124277 1
PHIIK 9 76716 0

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $78 million. That figure was $48 million in CRCM’s case. Foamix Pharmaceuticals Ltd (NASDAQ:FOMX) is the most popular stock in this table. On the other hand NVE Corporation (NASDAQ:NVEC) is the least popular one with only 5 bullish hedge fund positions. Care.com Inc (NYSE:CRCM) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard FOMX might be a better candidate to consider taking a long position in.

Disclosure: None

Page 2 of 2