What Hedge Funds Think about KB Home (KBH)?

As industrywide interest jumped, key hedge funds have jumped into KB Home (NYSE:KBH) headfirst. Ken Griffin’s Citadel Investment Group assembled the biggest call position in KB Home (NYSE:KBH). Citadel Investment Group had $2.9 million invested in the company at the end of the quarter. Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital also made a $2.5 million investment in the stock during the quarter. The following funds were also among the new KBH investors: Ken Heebner’s Capital Growth Management, Israel Englander’s Millennium Management, and Steve Cohen’s Point72 Asset Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as KB Home (NYSE:KBH) but similarly valued. We will take a look at Scholastic Corp (NASDAQ:SCHL), Gannett Co., Inc. (NYSE:GCI), First Financial Bancorp (NASDAQ:FFBC), and Qualys Inc (NASDAQ:QLYS). This group of stocks’ market caps are closest to KBH’s market cap.

As you can see these stocks had an average of 13 funds with bullish positions and the average amount invested in these stocks was $92 million. That figure was $170 million in KBH’s case. Gannett Co., Inc. (NYSE:GCI) is the most popular stock in this table, while First Financial Bancorp (NASDAQ:FFBC) is the least popular one with only eight funds having reported long positions. KB Home (NYSE:KBH) 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 GCI might be a better candidate to consider taking a long position in.

Disclosure: none