Axalta Coating Systems Ltd (AXTA): Are Hedge Funds Right About This Stock?

Consequently, key hedge funds have been driving this bullishness. SQ Advisors, managed by Lou Simpson, assembled the biggest position in Axalta Coating Systems Ltd (NYSE:AXTA). SQ Advisors had $149.5 million invested in the company at the end of the quarter. Benjamin A. Smith’s Laurion Capital Management also initiated a $71.9 million position during the quarter. The other funds with new positions in the stock are Eric W. Mandelblatt’s Soroban Capital Partners, Neil Chriss’s Hutchin Hill Capital, and Steve Cohen’s Point72 Asset Management.

Let’s now review hedge fund activity in other stocks similar to Axalta Coating Systems Ltd (NYSE:AXTA). These stocks are Westinghouse Air Brake Technologies Corp (NYSE:WAB), Aqua America Inc (NYSE:WTR), Packaging Corp Of America (NYSE:PKG), and Leucadia National Corp. (NYSE:LUK). This group of stocks’ market valuations are closest to AXTA’s market valuation.

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $398 million. That figure was $2.88 billion in AXTA’s case. Leucadia National Corp. (NYSE:LUK) is the most popular stock in this table. On the other hand Aqua America Inc (NYSE:WTR) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Axalta Coating Systems Ltd (NYSE:AXTA) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.