As aggregate interest increased, key money managers were breaking ground themselves. Gotham Asset Management initiated the most outsized position in Lannett Company, Inc. (NYSEAMEX:LCI). One of the biggest hedge funds in the world, Millennium Management, also initiated a $6.2 million position during the quarter. The other funds with new positions in the stock are Ken Griffin’s Citadel Investment Group, Ken Griffin’s Citadel Investment Group, and Paul Tudor Jones’s Tudor Investment Corp.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Lannett Company, Inc. (NYSEAMEX:LCI) but similarly valued. We will take a look at Array Biopharma Inc (NASDAQ:ARRY), Red Rock Resorts Inc (NASDAQ:RRR), CIRCOR International, Inc. (NYSE:CIR), and Forward Pharma A/S (NASDAQ:FWP). This group of stocks’ market values are similar to LCI’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ARRY | 32 | 394871 | 15 |
| RRR | 17 | 185569 | -4 |
| CIR | 11 | 185417 | 4 |
| FWP | 10 | 208236 | -1 |
As you can see these stocks had an average of 18 funds with bullish positions and the average amount invested in these stocks was $244 million. That figure was $72 million in LCI’s case. Array Biopharma Inc (NASDAQ:ARRY) is by far the most popular stock in this table. On the other hand Forward Pharma A/S (NASDAQ:FWP) is the least popular one with only 10 funds holding shares. Lannett Company, Inc. (NYSEAMEX:LCI) 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 Array Biopharma Inc (NASDAQ:ARRY) might be a better candidate to consider taking a long position in.
Disclosure: none
