Here is Why Hedge Funds Are Betting On IAC/InterActiveCorp (NASDAQ:IACI)

Keeping this in mind, let’s check out the recent action encompassing IAC/InterActiveCorp (NASDAQ:IACI).

What have hedge funds been doing with IAC/InterActiveCorp (NASDAQ:IACI)?

At the end of the first quarter, a total of 55 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 10% from the previous quarter. With hedgies’ capital changing hands, there exists a few noteworthy hedge fund managers who were upping their stakes considerably.

According to hedge fund experts at Insider Monkey, Luxor Capital Group, managed by Christian Leone, holds the biggest position in IAC/InterActiveCorp (NASDAQ:IACI). Luxor Capital Group has a $181.2 million position in the stock, comprising 2.9% of its 13F portfolio. On Luxor Capital Group’s heels is Greenlight Capital, led by David Einhorn, holding a $171.7 million position; the fund has 2.2% of its 13F portfolio invested in the stock. Some other peers with similar optimism consist of Dan Loeb’s Third Point, Eric Bannasch’s Cadian Capital and Zach Schreiber’s Point State Capital.

Now, some big names were leading the bulls’ herd. Point State Capital, managed by Zach Schreiber, initiated the most valuable position in IAC/InterActiveCorp (NASDAQ:IACI). Point State Capital had $81.9 million invested in the company at the end of the quarter. Doug Silverman and Alexander Klabin’s Senator Investment Group also made a $67.7 million investment in the stock during the quarter. The other funds with new positions in the stock are Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital, and Michael Barnes and Arif Inayatullah’s Tricadia Capital Management.

Hedge funds collectively own nearly 30% of IACI’s outstanding shares. There is a consensus among hedge funds that IACI is a good long-term bet that will probably outperform the market. Corsair thinks the stock had a 50% upside potential at the end of the first quarter. IACI shares went up more than 20% since then. We believe the stock will continue to outperform the market in the near term.