Landcadia Holdings Inc. (LCAHU): Are Hedge Funds Right About This Stock?

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As one would reasonably expect, some big names were leading the bulls’ herd. Fir Tree initiated the most valuable position in Landcadia Holdings Inc. (NASDAQ:LCAHU). According to its latest 13F filing, the fund had $14.7 million invested in the company at the end of the quarter. Louis Bacon’s Moore Global Investments also made an $11.9 million investment in the stock during the quarter. The following funds were also among the new LCAHU investors: Anand Parekh’s Alyeska Investment Group and Neil Chriss’ Hutchin Hill Capital.

Let’s also examine hedge fund activity in other stocks similar to Landcadia Holdings Inc. (NASDAQ:LCAHU). These stocks are Easterly Acquisition Corp (NASDAQ:EACQ), Hovnanian Enterprises, Inc. (NYSE:HOV), Trinity Place Holdings Inc. (NYSE:TPHS), and BankFinancial Corporation (NASDAQ:BFIN). This group of stocks’ market valuations are similar to LCAHU’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
EACQ 11 78069 0
HOV 10 13243 1
TPHS 4 83372 0
BFIN 4 9775 -1

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $46 million. That figure was $159 million in LCAHU’s case. Easterly Acquisition Corp (NASDAQ:EACQ) is the most popular stock in this table. On the other hand Trinity Place Holdings Inc. (NYSE:TPHS) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Landcadia Holdings Inc. (NASDAQ:LCAHU) 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.

Disclosure: none.

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