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Do Hedge Funds Love Wayfair Inc (W)?

With a general bullishness amongst the heavyweights, key money managers have been driving this bullishness. Chilton Investment Company, managed by Richard Chilton, created the most valuable position in Wayfair Inc (NYSE:W), worth $60.6 million as mentioned before. Alex Sacerdote’s Whale Rock Capital Management also initiated a $24.2 million position during the quarter. The other funds with brand new W positions are David Keidan’s Buckingham Capital Management, Scott McLellan’s Marble Arch Investments, and Steve Cohen’s Point72 Asset Management.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Wayfair Inc (NYSE:W) but similarly valued. These stocks are United States Steel Corporation (NYSE:X), Nationstar Mortgage Holdings Inc (NYSE:NSM), American Axle & Manufact. Holdings, Inc. (NYSE:AXL), and Paylocity Holding Corp (NASDAQ:PCTY). This group of stocks’ market valuations are similar to W’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
X 25 97151 -4
NSM 22 1282540 0
AXL 19 297821 -3
PCTY 19 88893 8

As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $442 million. That figure was just $357 million in W’s case, not a very good sign. United States Steel Corporation (NYSE:X) is the most popular stock in this table, while American Axle & Manufact. Holdings, Inc. (NYSE:AXL) and Paylocity Holding Corp (NASDAQ:PCTY) are the outsiders with only 19 bullish hedge fund positions. Compared to these stocks Wayfair Inc (NYSE:W) 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.

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