Hilton Worldwide Holdings Inc (HLT): Are Hedge Funds Right About This Stock?

Consequently, some big names were leading the bulls’ herd. Stephen Mandel’s Lone Pine Capital initiated the most valuable position in Hilton Worldwide Holdings Inc (NYSE:HLT). The fund had $449.4 million invested in the company at the end of the quarter. Richard S. Pzena’s Pzena Investment Management also made a $224.8 million investment in the stock during the quarter. The other funds with new positions in the stock are Christian Leone’s Luxor Capital Group, Scott McLellan’s Marble Arch Investments, and Aaron Cowen’s Suvretta Capital Management.

Let’s go over hedge fund activity in other stocks similar to Hilton Worldwide Holdings Inc (NYSE:HLT). These stocks are Weyerhaeuser Company (NYSE:WY), Dollar Tree, Inc. (NASDAQ:DLTR), St. Jude Medical, Inc. (NYSE:STJ), and Discover Financial Services (NYSE:DFS). This group of stocks’ market valuations match HLT’s market valuation.

As you can see these stocks had an average of 46 hedge funds with bullish positions and the average amount invested in these stocks was $2.08 billion. That figure was approximately $3.11 billion in HLT’s case. Dollar Tree, Inc. (NASDAQ:DLTR) is the most popular stock in this table. On the other hand Weyerhaeuser Company (NYSE:WY) is the least popular one with only 27 bullish hedge fund positions. Hilton Worldwide Holdings Inc (NYSE:HLT) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard DLTR might be a better candidate to consider a long position.

Disclosure: none.