Is D.R. Horton, Inc. (DHI) A Good Stock To Buy?

Page 2 of 2

Due to the fact that D.R. Horton, Inc. (NYSE:DHI) has faced a declination in interest from hedge fund managers, it’s safe to say that there lies a certain “tier” of hedgies that decided to sell off their full holdings heading into Q4. At the top of the heap, George Soros’s Soros Fund Management dumped the biggest investment of the 700 funds watched by Insider Monkey, worth close to $76.5 million in stock. David Tepper’s fund, Appaloosa Management LP, also said goodbye to its stock, about $29.6 million worth. These moves are important to note, as total hedge fund interest fell by 2 funds heading into Q4.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as D.R. Horton, Inc. (NYSE:DHI) but similarly valued. These stocks are SL Green Realty Corp (NYSE:SLG), CBRE Group Inc (NYSE:CBG), Newell Rubbermaid Inc. (NYSE:NWL), and Fastenal Company (NASDAQ:FAST). This group of stocks’ market caps resemble DHI’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SLG 12 99631 -8
CBG 32 1662629 0
NWL 27 468886 8
FAST 17 300642 -2

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $633 million. That figure was $1,299 million in DHI’s case. CBRE Group Inc (NYSE:CBG) is the most popular stock in this table. On the other hand SL Green Realty Corp (NYSE:SLG) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks D.R. Horton, Inc. (NYSE:DHI) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Page 2 of 2