LegacyTexas Financial Group Inc (LTXB): Why Are Hedge Funds Snapping Up This Stock?

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Consequently, key hedge funds have jumped into LegacyTexas Financial Group Inc (NASDAQ:LTXB) headfirst. Alpenglow Capital assembled the most valuable position in LegacyTexas Financial Group Inc (NASDAQ:LTXB). Alpenglow Capital had $3.1 million invested in the company at the end of the quarter. Solomon Kumin’s Folger Hill Asset Management also initiated a $2.5 million position during the quarter. The other funds with new positions in the stock are Dmitry Balyasny’s Balyasny Asset Management, Glenn Russell Dubin’s Highbridge Capital Management, and Michael Platt and William Reeves’ BlueCrest Capital Mgmt..

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as LegacyTexas Financial Group Inc (NASDAQ:LTXB) but similarly valued. We will take a look at YY Inc (ADR) (NASDAQ:YY), KB Home (NYSE:KBH), Neustar Inc (NYSE:NSR), and Albany International Corp. (NYSE:AIN). This group of stocks’ market valuations match LTXB’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
YY 30 511440 12
KBH 18 170441 2
NSR 16 96087 -1
AIN 11 66908 1

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $211 million. That figure was $85 million in LTXB’s case. YY Inc (ADR) (NASDAQ:YY) is the most popular stock in this table. On the other hand Albany International Corp. (NYSE:AIN) is the least popular one with only 11 bullish hedge fund positions. LegacyTexas Financial Group Inc (NASDAQ:LTXB) 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 YY might be a better candidate to consider taking a long position in.

Disclosure: None

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