Is WESCO International, Inc. (WCC) A Good Stock To Buy?

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Since WESCO International, Inc. (NYSE:WCC) has experienced a declination in interest from hedge fund managers, logic holds that there lies a certain “tier” of hedgies that decided to sell off their full holdings last quarter. Intriguingly, Kenney Y. Oh’s SeaStone Capital Management said goodbye to the largest position of the “upper crust” of funds tracked by Insider Monkey, worth an estimated $10.7 million in stock. Andy Redleaf’s fund, Whitebox Advisors, also dropped its stock, about $5.4 million worth. These bearish behaviors are interesting, as total hedge fund interest fell by 3 funds last quarter.

Let’s now review hedge fund activity in other stocks similar to WESCO International, Inc. (NYSE:WCC). We will take a look at Laredo Petroleum Holdings Inc (NYSE:LPI), BofI Holding, Inc. (NASDAQ:BOFI), Owens & Minor, Inc. (NYSE:OMI), and Cirrus Logic, Inc. (NASDAQ:CRUS). This group of stocks’ market values are similar to WCC’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
LPI 20 226912 -3
BOFI 13 132203 -1
OMI 18 150949 0
CRUS 30 229498 5

As you can see these stocks had an average of 20.25 hedge funds with bullish positions and the average amount invested in these stocks was $185 million. That figure was $351 million in WCC’s case. Cirrus Logic, Inc. (NASDAQ:CRUS) is the most popular stock in this table. On the other hand BofI Holding, Inc. (NASDAQ:BOFI) is the least popular one with only 13 bullish hedge fund positions. WESCO International, Inc. (NYSE:WCC) 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 CRUS might be a better candidate to consider a long position.

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