Do Hedge Funds Love Tri Pointe Homes Inc (TPH)?

Because Tri Pointe Homes Inc (NYSE:TPH) has faced a bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there is a sect of hedgies that slashed their entire stakes last quarter. Interestingly, Jacob Doft’s Highline Capital Management sold off the largest position of the “upper crust” of funds followed by Insider Monkey, totaling close to $54.4 million in stock. Dmitry Balyasny’s fund, Balyasny Asset Management, also cut its stock, about $13.4 million worth of shares. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest fell by 3 funds last quarter.

Let’s now review hedge fund activity in other stocks similar to Tri Pointe Homes Inc (NYSE:TPH). These stocks are Fulton Financial Corp (NASDAQ:FULT), Northern Tier Energy LP (NYSE:NTI), Zynga Inc (NASDAQ:ZNGA), and Hancock Holding Company (NASDAQ: HBHC). This group of stocks’ market values is closest to Tri Pointe Homes Inc (NYSE:TPH)’s market value.

As you can see, these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $192 million. That figure was $419 million in Tri Pointe Homes Inc (NYSE:TPH)’s case. Zynga Inc (NASDAQ:ZNGA) is the most popular stock in this table. On the other hand, Fulton Financial Corp (NASDAQ:FULT) is the least popular one with only 11 bullish hedge fund positions. Tri Pointe Homes Inc (NYSE:TPH) 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 Zynga Inc (NASDAQ:ZNGA) might be a better candidate to consider a long position.