Hedge Funds Are Crazy About WGL Holdings Inc (WGL)

Now, key hedge funds have been driving this bullishness. Luminus Management, led by Jonathan Barrett and Paul Segal, initiated the biggest position in WGL Holdings Inc (NYSE:WGL). According to its latest 13F filing, the fund had $15.2 million invested in the company at the end of the quarter. Michael Platt and William Reeves’s BlueCrest Capital Mgmt. also made a $0.3 million investment in the stock during the quarter. The only other fund with a new position in the stock is Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s now take a look at hedge fund activity in other stocks similar to WGL Holdings Inc (NYSE:WGL). We will take a look at Cimpress NV (NASDAQ:CMPR), J2 Global Inc (NASDAQ:JCOM), SLM Corp (NASDAQ:SLM), and New Residential Investment Corp (NYSE:NRZ). All of these stocks’ market caps are closest to WGL’s market cap.

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $321 million. That figure was $82 million in WGL’s case. J2 Global Inc (NASDAQ:JCOM) is the most popular stock in this table. On the other hand Cimpress NV (NASDAQ:CMPR) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks WGL Holdings Inc (NYSE:WGL) is even less popular than CMPR. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: none.