Hedge Funds Are Betting On Mattress Firm Holding Corp (MFRM)

As one would reasonably expect, key hedge funds have been driving this bullishness. Pivot Point Capital created the most outsized position in Mattress Firm Holding Corp (NASDAQ:MFRM). Pivot Point Capital had $11.7 million invested in the company at the end of the quarter. David Keidan’s Buckingham Capital Management also initiated a $9.7 million position during the quarter. The following funds were also among the new MFRM investors: D. E. Shaw’s D E Shaw, Benjamin A. Smith’s Laurion Capital Management, and Jacob Gottlieb’s Visium Asset Management.

Let’s go over hedge fund activity in other stocks similar to Mattress Firm Holding Corp (NASDAQ:MFRM). We will take a look at Joy Global Inc. (NYSE:JOY), Loral Space & Communications Ltd. (NASDAQ:LORL), Abercrombie & Fitch Co. (NYSE:ANF), and Tetra Tech, Inc. (NASDAQ:TTEK). All of these stocks’ market caps resemble MFRM’s market cap.

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $343 million, close to the $368 million in MFRM’s case. Joy Global Inc. (NYSE:JOY) is the most popular stock in this table, while Tetra Tech, Inc. (NASDAQ:TTEK) is the least popular one with only 17 bullish hedge fund positions. Compared to these stocks Mattress Firm Holding Corp (NASDAQ:MFRM) is even less popular than TTEK. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.