Hedge Funds Are Crazy About Tri Pointe Homes Inc (TPH)

Now, some big names have been driving this bullishness. Glenhill Advisors, managed by Glenn J. Krevlin, assembled the largest position in TRI Pointe Group Inc (NYSE:TPH). According to its latest 13F filing, the fund had $11.2 million invested in the company at the end of the quarter. Eduardo Abush’s Waterfront Capital Partners also made a $3.2 million investment in the stock during the quarter. The following funds were also among the new TPH investors: John A. Levin’s Levin Capital Strategies, Emanuel J. Friedman’s EJF Capital, and Ken Fisher’s Fisher Asset Management.

Let’s go over hedge fund activity in other stocks similar to TRI Pointe Group Inc (NYSE:TPH). These stocks are Capitol Federal Financial, Inc. (NASDAQ:CFFN), El Paso Electric Company (NYSE:EE), CommVault Systems, Inc. (NASDAQ:CVLT), and Ultragenyx Pharmaceutical Inc (NASDAQ:RARE). This group of stocks’ market valuations match TPH’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CFFN 12 139834 0
EE 9 141784 -3
CVLT 28 295284 4
RARE 18 162983 -1

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $185 million. That figure was $242 million in TPH’s case. CommVault Systems, Inc. (NASDAQ:CVLT) is the most popular stock in this table. On the other hand El Paso Electric Company (NYSE:EE) is the least popular one with only 9 bullish hedge fund positions. TRI Pointe Group Inc (NYSE:TPH) 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 CVLT might be a better candidate to consider a long position.

Disclosure: none.