Do Hedge Funds Love Westlake Chemical Corporation (WLK)?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that dumped their entire stakes in the stock during the third quarter. Intriguingly, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital dumped the biggest position of all the investors monitored by Insider Monkey, valued at an estimated $42.5 million in stock, and D. E. Shaw’s D E Shaw was right behind this move, as the fund sold off about $4.3 million worth of Westlake Chemical Corporation (NYSE:WLK) shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Westlake Chemical Corporation (NYSE:WLK) but similarly valued. These stocks are PulteGroup, Inc. (NYSE:PHM), ASML Holding N.V. (ADR) (NASDAQ:ASML), 58.com Inc (ADR) (NYSE:WUBA), and Gaming and Leisure Properties Inc (NASDAQ:GLPI). This group of stocks’ market caps resemble WLK’s market cap.

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $613 million. That figure was $549 million in WLK’s case. Gaming and Leisure Properties Inc (NASDAQ:GLPI) is the most popular stock in this table. On the other hand ASML Holding N.V. (ADR) (NASDAQ:ASML) is the least popular one with only 10 bullish hedge fund positions. Westlake Chemical Corporation (NYSE:WLK) 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 GLPI might be a better candidate to consider taking a long position in.

Disclosure: none.