Is Guidewire Software Inc (GWRE) A Good Stock To Buy?

Now, some big names have been driving this bullishness. Balyasny Asset Management, managed by Dmitry Balyasny, created the most outsized call position in Guidewire Software Inc (NYSE:GWRE). Balyasny Asset Management had $5.3 million invested in the company at the end of the quarter. Richard Driehaus’s Driehaus Capital also initiated an $4.5 million position during the quarter. The other funds with new positions in the stock are Neil Chriss’s Hutchin Hill Capital, Cliff Asness’s AQR Capital Management, and Paul Tudor Jones’s Tudor Investment Corp.

Let’s now take a look at hedge fund activity in other stocks similar to Guidewire Software Inc (NYSE:GWRE). We will take a look at Colfax Corp (NYSE:CFX), CPFL Energia S.A. (ADR) (NYSE:CPL), EPAM Systems Inc (NYSE:EPAM), and BankUnited (NYSE:BKU). All of these stocks’ market caps resemble GWRE’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 $353 million, versus $108 million in GWRE’s case. Colfax Corp (NYSE:CFX) is the most popular stock in this table, while CPFL Energia S.A. (ADR) (NYSE:CPL) is the least popular one with only 6 bullish hedge fund positions. Guidewire Software Inc (NYSE:GWRE) 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 CFX might be a better candidate to consider a long position.