The Home Depot, Inc. (HD) Updates Investors on Costs Related to Data Breach

As aggregate interest increased, key hedge funds have jumped into The Home Depot, Inc. (NYSE:HD) headfirst. Discovery Capital Management, managed by Rob Citrone, assembled the most outsized position in The Home Depot, Inc. (NYSE:HD). Discovery Capital Management had $108.3 million invested in the company at the end of the quarter. Alexander Mitchell’s Scopus Asset Management also made a $76.7 million investment in the stock during the quarter. The other funds with new positions in the stock are Andreas Halvorsen’s Viking Global, Gabriel Plotkin’s Melvin Capital Management, and Alexander Mitchell’s Scopus Asset Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as The Home Depot, Inc. (NYSE:HD) but similarly valued. These stocks are Visa Inc (NYSE:V), Toyota Motor Corporation (ADR) (NYSE:TM), The Walt Disney Company (NYSE:DIS), and Intel Corporation (NASDAQ:INTC). This group of stocks’ market caps are similar to HD’s market cap.

As you can see these stocks had an average of 55 hedge funds with bullish positions and the average amount invested in these stocks was $4134 million. That figure was $4635 million in HD’s case. Visa Inc (NYSE:V) is the most popular stock in this table. On the other hand Toyota Motor Corporation (ADR) (NYSE:TM) is the least popular one with only 12 bullish hedge fund positions. The Home Depot, Inc. (NYSE:HD) 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, Visa might be a better candidate to consider a long position.

Disclosure: None