How WCI Communities Inc (WCIC) Stacks Up Against Its Peers

Now, key money managers have jumped into WCI Communities Inc (NYSE:WCIC) headfirst. Highbridge Capital Management established the most outsized position in WCI Communities Inc (NYSE:WCIC). Highbridge Capital Management had $7.4 million invested in the company at the end of the quarter. Simon Davies’ Sand Grove Capital Partners also initiated a $7.1 million position during the quarter. The other funds with new positions in the stock are Clint Carlson’s Carlson Capital, Matthew Halbower’s Pentwater Capital Management, and John Paulson’s Paulson & Co.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as WCI Communities Inc (NYSE:WCIC) but similarly valued. These stocks are Francesca’s Holdings Corp (NASDAQ:FRAN), Almost Family, Inc. (NASDAQ:AFAM), Dorchester Minerals LP (NASDAQ:DMLP), and Lindblad Expeditions Holdings Inc (NASDAQ:LIND). This group of stocks’ market caps are closest to WCIC’s market cap.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $58 million. That figure was $120 million in WCIC’s case. Francesca’s Holdings Corp (NASDAQ:FRAN) is the most popular stock in this table. On the other hand Dorchester Minerals LP (NASDAQ:DMLP) is the least popular one with only 4 bullish hedge fund positions. WCI Communities Inc (NYSE:WCIC) 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 FRAN might be a better candidate to consider taking a long position in.

Disclosure: None