Hedge Funds Are Crazy About Esterline Technologies Corporation (ESL)

Now, key hedge funds have been driving this bullishness. GLG Partners established the most valuable position in Esterline Technologies Corporation (NYSE:ESL). GLG Partners had $11.2 million invested in the company at the end of the quarter. Ed Bosek’s BeaconLight Capital also initiated a $5.8 million position during the quarter. The following funds were also among the new ESL investors: D. E. Shaw’s D E Shaw, Jim Simons’ Renaissance Technologies, and Robert Joseph Caruso’s Select Equity Group.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Esterline Technologies Corporation (NYSE:ESL) but similarly valued. These stocks are Mueller Industries, Inc. (NYSE:MLI), Lithia Motors Inc (NYSE:LAD), Och-Ziff Capital Management Group LLC (NYSE:OZM), and DiamondRock Hospitality Company (NYSE:DRH). All of these stocks’ market caps match ESL’s market cap.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $204 million. That figure was $378 million in ESL’s case. Lithia Motors Inc (NYSE:LAD) is the most popular stock in this table. On the other hand DiamondRock Hospitality Company (NYSE:DRH) is the least popular one with only 12 bullish hedge fund positions. Esterline Technologies Corporation (NYSE:ESL) 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 LAD might be a better candidate to consider taking a long position in.

Disclosure: None