Hedge Funds Are Crazy About Servicemaster Global Holdings Inc (SERV)

As aggregate interest increased, key hedge funds have been driving this bullishness. Owl Creek Asset Management, managed by Jeffrey Altman, established the most valuable position in Servicemaster Global Holdings Inc (NYSE:SERV). The funds had $58.1 million invested in the company at the end of the quarter. Jeff Lignelli’s Incline Global Management also made a $38.7 million investment in the stock during the quarter. The other funds with brand new SERV positions are Isaac Corre’s Governors Lane, Malcolm Fairbairn’s Ascend Capital, and Steve Pei’s Gratia Capital.

Let’s now review hedge fund activity in other stocks similar to Servicemaster Global Holdings Inc (NYSE:SERV). We will take a look at Copart, Inc. (NASDAQ:CPRT), Assurant, Inc. (NYSE:AIZ), JetBlue Airways Corporation (NASDAQ:JBLU), and Post Holdings Inc (NYSE:POST). This group of stocks’ market valuations resemble SERV’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CPRT 34 349162 8
AIZ 16 219776 -8
JBLU 32 486895 -6
POST 44 1553643 4

As you can see these stocks had an average of 32 hedge funds with bullish positions and the average amount invested in these stocks was $652 million. That figure was $1.31 billion in SERV’s case. Post Holdings Inc (NYSE:POST) is the most popular stock in this table. On the other hand Assurant, Inc. (NYSE:AIZ) is the least popular one with only 16 bullish hedge fund positions. Servicemaster Global Holdings Inc (NYSE:SERV) 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 POST might be a better candidate to consider a long position.

Disclosure: none.