Three IPOs That Hedge Funds Absolutely Loved This Summer

2. Fitbit Inc (NYSE:FIT)

Investors with Long Positions (as of June 30): 27

Aggregate Value of Investors’ Holdings (as of June 30): $249.92 Million

Even though Fitbit Inc (NYSE:FIT) launched its IPO on the very same day as Univar Inc (NYSE:UNVR), it has been subjected to a very different treatment by investors. The stock price of the $7.12 billion technology company, which provides various wearable health and fitness products, is up by nearly 16% since its IPO. Considering that it is currently trading at a forward earnings multiple of 35, it might be trading in overvalued territory at present. Recently, IDC published a report which weaves in neatly with the overvalued thesis for the company, as it cited that second quarter sales for Fitbit Inc (NYSE:FIT) in terms of the company’s market share decreased to 24.3% compared to 30.4% on a year-over-year basis, as competition from the likes of Apple Inc. (NASDAQ:AAPL) and Xiaomi has intensified. Moreover, another research firm, Argus Insights states that the market for consumer wearables is actually shrinking when compared to last year. In such a scenario, added competition in a shrinking market could really take a toll on Fitbit Inc (NYSE:FIT)’s top line. John Griffin‘s Blue Ridge Capital is the largest stockholder of Fitbit in our database, with 3.5 million shares valued at $133.81 million.

 1. TransUnion (NYSE:TRU)

Investors with Long Positions (as of June 30): 29

Aggregate Value of Investors’ Holdings (as of June 30): $337.27 Million

Following its IPO in late June, TransUnion (NYSE:TRU)’s stock price is up by about 1.7%. The $4.71 billion company provides risk and information solutions to businesses and consumers. Judging by the company’s performance in the second quarter, it seems to be on the right track. Revenues for the quarter rose by 16% compared to the same quarter a year ago, while if one-time items are excluded, its EPS rose to $0.27 from $0.21. Blue Ridge Capital and Daniel S. Och‘s OZ Management are two prominent stockholders of TransUnion (NYSE:TRU), holding 3.35 million shares valued at $84.09 million and 2.88 million shares valued at $72.29 million respectively.

Disclosure: None