Hedge Funds Are Betting On Builders FirstSource, Inc. (BLDR)

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As industrywide interest jumped, key money managers have jumped into Builders FirstSource, Inc. (NASDAQ:BLDR) headfirst. Ross Margolies’ Stelliam Investment Management  initiated a $21 million position during the quarter. The following funds were also among the new BLDR investors: Joel Ramin’s 12 West Capital Management, Stephen Loukas, David A. Lorber, Zachary George’s FrontFour Capital Group, and Jim Simons’  Renaissance Technologies.

Let’s now review hedge fund activity in other stocks similar to Builders FirstSource, Inc. (NASDAQ:BLDR). We will take a look at TopBuild Corp (NYSE:BLD), Emergent Biosolutions Inc (NYSE:EBS), Pacira Pharmaceuticals Inc (NASDAQ:PCRX), and Third Point Reinsurance Ltd (NYSE:TPRE). This group of stocks’ market valuations resemble BLDR’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BLD 21 182845 -5
EBS 14 135032 -3
PCRX 27 265998 1
TPRE 10 24163 -3

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $152 million. That figure was $441 million in BLDR’s case. Pacira Pharmaceuticals Inc (NASDAQ:PCRX) is the most popular stock in this table. On the other hand Third Point Reinsurance Ltd (NYSE:TPRE) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Builders FirstSource, Inc. (NASDAQ:BLDR) 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.

Disclosure: None

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