Wendys Co (WEN) Down 3.55% Post Tender Offer Results; Good Chance To Buy?

How are hedge funds trading The Wendy’s Company (NASDAQ:WEN)?

At the end of the first quarter, a total of 18 of the hedge funds tracked by Insider Monkey were bullish in this stock, a drop of 33% from one quarter earlier. With hedgies’ capital changing hands, there exists a select group of notable hedge fund managers who were boosting their holdings substantially.

According to hedge fund intelligence website Insider Monkey, Nelson Peltz’s Trian Partners had the biggest position in The Wendy’s Company (NASDAQ:WEN), worth close to $706.3 million and 64.8 million shares, accounting for 8.3% of its total 13F portfolio. The second-largest stake was held by Horizon Asset Management, managed by Murray Stahl, which held a $311.8 million position of 28.6 million shares; 4.3% of its 13F portfolio was allocated to the stock. Other hedge funds with similar optimism consist of David E. Shaw‘s D E Shaw, Ken Griffin’s Citadel Investment Group, and Jim Simons’ Renaissance Technologies.

Judging by the fact that The Wendy’s Company (NASDAQ:WEN) has witnessed a declination in interest from hedge fund managers, it’s safe to say that there was a specific group of fund managers that decided to sell off their full holdings in the first quarter. Intriguingly, Jason Karp’s Tourbillon Capital Partners sold off the biggest investment of all the hedgies tracked by Insider Monkey, valued at an estimated $17.2 million in stock. Peter Rathjens, Bruce Clarke and John Campbell‘s fund, Arrowstreet Capital, also cut its position, valued at about $14.7 million. These moves are intriguing to say the least, as total hedge fund interest fell by nine funds in the first quarter.

Considering otherwise positive share price growth this year and the commitment of Wendys to grow shareholder value, we recommend a buy of the shares of the burger chain at their currently depressed levels.

Disclosure: None