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Do Hedge Funds Love Headwaters Inc (HW)?

Due to the fact that Headwaters Inc (NYSE:HW) has encountered no change in sentiment from hedge fund managers, we must take a look at a specific group of hedge funds that decided to sell off their full holdings last quarter. Intriguingly, Eduardo Abush’s Waterfront Capital Partners sold off the biggest position of the “upper crust” of funds studied by Insider Monkey, valued at close to $4.7 million in stock. Steve Cohen’s fund, Point72 Asset Management, also dumped its stock, about $2.2 million worth of HW shares.

Let’s also examine hedge fund activity in other stocks similar to Headwaters Inc (NYSE:HW). We will take a look at e.l.f. Beauty Inc (NYSE:ELF), Glaukos Corp (NYSE:GKOS), Knowles Corp (NYSE:KN), and Sonic Corporation (NASDAQ:SONC). All of these stocks’ market caps are closest to HW’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ELF 24 62106 24
GKOS 19 175123 3
KN 11 18331 1
SONC 22 325006 4

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 $145 million. That figure was $85 million in HW’s case. e.l.f. Beauty Inc (NYSE:ELF) is the most popular stock in this table. On the other hand Knowles Corp (NYSE:KN) is the least popular one with only 11 bullish hedge fund positions. Headwaters Inc (NYSE:HW) 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 have a larger number of hedge funds. In this regard ELF might be a better candidate to consider taking a long position in.