Now, specific money managers were breaking ground themselves. Gotham Asset Management, managed by Joel Greenblatt, assembled the largest position in Nuance Communications Inc. (NASDAQ:NUAN). Gotham Asset Management had $1.4 million invested in the company at the end of the quarter. Cliff Asness’ AQR Capital Management also initiated a $1.2 million position during the quarter. The following funds were also among the new NUAN investors: Ray Dalio’s Bridgewater Associates, David Costen Haley’s HBK Investments, and George Hall’s Clinton Group.
Let’s now review hedge fund activity in other stocks similar to Nuance Communications Inc. (NASDAQ:NUAN). These stocks are Tegna Inc (NYSE:TGNA), Tyler Technologies, Inc. (NYSE:TYL), Community Health Systems (NYSE:CYH), and TFS Financial Corporation (NASDAQ:TFSL). This group of stocks’ market caps are similar to NUAN’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| TGNA | 21 | 1012114 | 1 |
| TYL | 13 | 143812 | 0 |
| CYH | 59 | 1171173 | -2 |
| TFSL | 14 | 229151 | 1 |
As you can see these stocks had an average of 26.75 hedge funds with bullish positions and the average amount invested in these stocks was $639 million. That figure was $1,154 million in NUAN’s case. Community Health Systems (NYSE:CYH) is the most popular stock in this table. On the other hand Tyler Technologies, Inc. (NYSE:TYL) is the least popular one with only 13 bullish hedge fund positions. Nuance Communications Inc. (NASDAQ:NUAN) 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 CYH might be a better candidate to consider a long position.
