Hedge Funds Are Buying Wayfair Inc (W)

With a general bullishness amongst the heavyweights, key hedge funds were leading the bulls’ herd. EastBay Asset Management, managed by Adam Wolfberg and Steven Landry, initiated the biggest position in Wayfair Inc (NYSE:W). EastBay Asset Management had $19.1 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also made a $15.3 million investment in the stock during the quarter. The other funds with new positions in the stock are Ryan Frick and Oliver Evans’ Dorsal Capital Management, Paul Tudor Jones’s Tudor Investment Corp, and Paul Reeder and Edward Shapiro’s PAR Capital Management.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Wayfair Inc (NYSE:W) but similarly valued. We will take a look at Hill-Rom Holdings, Inc. (NYSE:HRC), Aspen Technology, Inc. (NASDAQ:AZPN), Cypress Semiconductor Corporation (NASDAQ:CY), and Apple Hospitality REIT Inc (NYSE:APLE). This group of stocks’ market caps resemble W’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 $333 million. That figure was $379 million in W’s case. Hill-Rom Holdings, Inc. (NYSE:HRC) is the most popular stock in this table. On the other hand Apple Hospitality REIT Inc (NYSE:APLE) is the least popular one with only 11 bullish hedge fund positions. Wayfair Inc (NYSE:W) 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 HRC might be a better candidate to consider a long position.

Disclosure: None