Is Taylor Morrison Home Corp (TMHC) A Good Stock To Buy?

As aggregate interest increased, specific money managers were breaking ground themselves. Covalent Capital Partners, managed by Robert Hockett, created the most valuable position in Taylor Morrison Home Corp (NYSE:TMHC). Covalent Capital Partners had $5.4 million invested in the company at the end of the quarter. Chao Ku’s Nine Chapters Capital Management also made an $2.2 million investment in the stock during the quarter. The following funds were also among the new TMHC investors: Michael Platt and William Reeves’s BlueCrest Capital Mgmt., 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 Taylor Morrison Home Corp (NYSE:TMHC). These stocks are XPO Logistics Inc (NYSE:XPO), Convergys Corporation (NYSE:CVG), F.N.B. Corp (NYSE:FNB), and Sunedison Inc (NYSE:SUNE). This group of stocks’ market values are closest to TMHC’s market value.

As you can see these stocks had an average of 38 hedge funds with bullish positions and the average amount invested in these stocks was $532 million. That figure was just $132 million in TMHC’s case. Sunedison Inc (NYSE:SUNE) is the most popular stock in this table, while F.N.B. Corp (NYSE:FNB) is the least popular one with only 12 bullish hedge fund positions. Taylor Morrison Home Corp (NYSE:TMHC) 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 SUNE might be a better candidate to consider a long position.