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.

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.