Hedge Funds Are Crazy About CarMax, Inc (KMX)

Consequently, some big names have jumped into CarMax, Inc (NYSE:KMX) headfirst. MIK Capital, managed by Kamyar Khajavi, assembled the most valuable position in CarMax, Inc (NYSE:KMX). According to its latest 13F filing, the fund had $42.8 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also made a $24.4 million investment in the stock during the quarter. The other funds with new positions in the stock are Israel Englander’s Millennium Management, Dmitry Balyasny’s Balyasny Asset Management, and Ken Griffin’s Citadel Investment Group.

Let’s go over hedge fund activity in other stocks similar to CarMax, Inc (NYSE:KMX). These stocks are Huaneng Power International Inc (ADR) (NYSE:HNP), Hanesbrands Inc. (NYSE:HBI), XL Group plc (NYSE:XL), and Autoliv Inc. (NYSE:ALV). This group of stocks’ market values resemble KMX’s market value.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $380 million. That figure was $979 million in KMX’s case. Hanesbrands Inc. (NYSE:HBI) is the most popular stock in this table. On the other hand Huaneng Power International Inc (ADR) (NYSE:HNP) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks CarMax, Inc (NYSE:KMX) 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.