Do Hedge Funds Love Headwaters Inc (HW)?

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With a general bullishness amongst the heavyweights, some big names have been driving this bullishness. Pyrrho Capital Management, managed by Vishal Bhutani and Joshua Bederman, established the most valuable position in Headwaters Inc (NYSE:HW). Pyrrho Capital Management had $0.8 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also initiated an $0.5 million position during the quarter. The following funds were also among the new HW investors: Charles Paquelet’s Skylands Capital, Matthew Hulsizer’s PEAK6 Capital Management, and Paul Tudor Jones’s Tudor Investment Corp.

Let’s go over hedge fund activity in other stocks similar to Headwaters Inc (NYSE:HW). These stocks are ClubCorp Holdings Inc (NYSE:MYCC), Park National Corporation (NYSEMKT:PRK), Builders FirstSource, Inc. (NASDAQ:BLDR), and Kaiser Aluminum Corp. (NASDAQ:KALU). This group of stocks’ market values are closest to HW’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MYCC 23 240996 -3
PRK 5 6778 -1
BLDR 39 231623 14
KALU 19 160762 4

As you can see these stocks had an average of 21.5 hedge funds with bullish positions and the average amount invested in these stocks was $160 million. That figure was $170 million in HW’s case. Builders FirstSource, Inc. (NASDAQ:BLDR) is the most popular stock in this table. On the other hand Park National Corporation (NYSEMKT:PRK) is the least popular one with only 5 bullish hedge fund positions. Headwaters Inc (NYSE:HW) 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 BLDR might be a better candidate to consider a long position.

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