Spectrum Brands Holdings, Inc. (SPB): Are Hedge Funds Right About This Stock?

Consequently, some big names have jumped into Spectrum Brands Holdings, Inc. (NYSE:SPB) headfirst. Gotham Asset Management, managed by Joel Greenblatt, initiated the most valuable position in Spectrum Brands Holdings, Inc. (NYSE:SPB). Gotham Asset Management had $13.7 million invested in the company at the end of the quarter. Michael Platt and William Reeves’ BlueCrest Capital Mgmt. also made a $7.4 million investment in the stock during the quarter. The following funds were also among the new SPB investors: Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners, Lee Ainslie’s Maverick Capital, and Noam Gottesman’s GLG Partners.

Let’s go over hedge fund activity in other stocks similar to Spectrum Brands Holdings, Inc. (NYSE:SPB). These stocks are Crown Holdings, Inc. (NYSE:CCK), Qorvo Inc (NASDAQ:QRVO), HD Supply Holdings Inc (NASDAQ:HDS), and KT Corporation (ADR) (NYSE:KT). This group of stocks’ market valuations match SPB’s market valuation.

As you can see these stocks had an average of 28 hedge funds with bullish positions and the average amount invested in these stocks was $716 million. That figure was $616 million in SPB’s case. HD Supply Holdings Inc (NASDAQ:HDS) is the most popular stock in this table. On the other hand KT Corporation (ADR) (NYSE:KT) is the least popular one with only 10 bullish hedge fund positions. Spectrum Brands Holdings, Inc. (NYSE:SPB) 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 HDS might be a better candidate to consider a long position.