Is Sportsman’s Warehouse Holdings Inc (SPWH) Going to Burn These Hedge Funds?

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As industrywide interest jumped, specific money managers have been driving this bullishness. Point72 Asset Management, led by Steve Cohen, assembled the most valuable position in Sportsman’s Warehouse Holdings Inc (NASDAQ:SPWH). Point72 Asset Management had $7.9 million invested in the company at the end of the quarter. Alexander Mitchell’s Scopus Asset Management also initiated a $5.1 million position during the quarter. The other funds with new positions in the stock are Brad Farber’s Atika Capital, Noam Gottesman’s GLG Partners, and Mike Vranos’ Ellington.

Let’s now take a look at hedge fund activity in other stocks similar to Sportsman’s Warehouse Holdings Inc (NASDAQ:SPWH). We will take a look at Heritage Commerce Corp. (NASDAQ:HTBK), San Juan Basin Royalty Trust (NYSE:SJT), Boingo Wireless Inc (NASDAQ:WIFI), and Culp, Inc. (NYSE:CFI). This group of stocks’ market valuations resemble SPWH’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
HTBK 7 11636 -1
SJT 6 9223 -1
WIFI 15 65884 -1
CFI 8 27763 0

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $29 million. That figure was $41 million in SPWH’s case. Boingo Wireless Inc (NASDAQ:WIFI) is the most popular stock in this table. On the other hand San Juan Basin Royalty Trust (NYSE:SJT) is the least popular one with only 6 bullish hedge fund positions. Sportsman’s Warehouse Holdings Inc (NASDAQ:SPWH) 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 WIFI might be a better candidate to consider taking a long position in.

Disclosure: None

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