Do Hedge Funds Love PulteGroup, Inc. (PHM)?

Consequently, some big names have been driving this bullishness. Land & Buildings Investment Management created the largest position in PulteGroup, Inc. (NYSE:PHM). Land & Buildings Investment Management had $17.4 million invested in the company at the end of the third quarter. Emanuel J. Friedman’s EJF Capital also made a $10 million investment in the stock during the quarter. The other funds with brand new PHM positions are David M. Markowitz’s Oskie Capital Management, Matthew Tewksbury’s Stevens Capital Management, and Alec Litowitz and Ross Laser’s Magnetar Capital.

Let’s check out hedge fund activity in other stocks similar to PulteGroup, Inc. (NYSE:PHM). We will take a look at Mednax Inc. (NYSE:MD), Bed Bath & Beyond Inc. (NASDAQ:BBBY), Avery Dennison Corp (NYSE:AVY), and Shire PLC (ADR) (NASDAQ:SHPG). This group of stocks’ market caps match PHM’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MD 12 122835 -2
BBBY 29 220418 2
AVY 30 403693 4
SHPG 50 3579399 -14

As you can see these stocks had an average of 30 hedge funds with bullish positions and the average amount invested in these stocks was $1.08 billion. That figure was $365 million in PHM’s case. Shire PLC (ADR) (NASDAQ:SHPG) is the most popular stock in this table and Mednax Inc. (NYSE:MD) is the least popular one with only 12 bullish hedge fund positions. PulteGroup, Inc. (NYSE:PHM) 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 Shire PLC (ADR) (NASDAQ:SHPG) might be a better candidate to consider a long position.