Should You Buy Webster Financial Corporation (WBS)?

With a general bullishness amongst the heavyweights, specific money managers have jumped into Webster Financial Corporation (NYSE:WBS) headfirst. Three Corner Global Investors, managed by Gunnar Overstrom, initiated the biggest position in Webster Financial Corporation (NYSE:WBS). Three Corner Global Investors had $15.5 million invested in the company at the end of the quarter. Renaissance Technologies also initiated a $3.3 million position during the quarter. The following funds were also among the new WBS investors: Vishal Bhutani and Joshua Bederman’s Pyrrho Capital Management, Anton Schutz’s Mendon Capital Advisors, and D E Shaw.

Let’s also examine hedge fund activity in other stocks similar to Webster Financial Corporation (NYSE:WBS). We will take a look at Portland General Electric Company (NYSE:POR), HEICO Corporation (NYSE:HEI), Akorn, Inc. (NASDAQ:AKRX), and Cepheid (NASDAQ:CPHD). This group of stocks’ market caps is closest to Webster Financial Corporation (NYSE:WBS)’s market cap.

As you can see, these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $302 million. That figure was $453 million in Webster Financial Corporation (NYSE:WBS)’s case. Akorn, Inc. (NASDAQ:AKRX) is the most popular stock in this table. On the other hand, Portland General Electric Company (NYSE:POR) is the least popular one with only 13 bullish hedge fund positions. Webster Financial Corporation (NYSE:WBS) 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, Akorn, Inc. (NASDAQ:AKRX) might be a better candidate to consider a long position.