Is Builders FirstSource, Inc. (BLDR) Going to Burn These Hedge Funds?

As aggregate interest increased, some big names were breaking ground themselves. BeaconLight Capital initiated the most valuable position in Builders FirstSource, Inc. (NASDAQ:BLDR). BeaconLight Capital had $12.7 million invested in the company at the end of the quarter. Robert Vollero and Gentry T. Beach’s Vollero Beach Capital Partners also made a $2.9 million investment in the stock during the quarter. The following funds were also among the new Builders FirstSource, Inc. (NASDAQ:BLDR) investors: Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, David Costen Haley’s HBK Investments, and Chao Ku’s Nine Chapters Capital Management.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Builders FirstSource, Inc. (NASDAQ:BLDR) but similarly valued. We will take a look at Kaiser Aluminum Corp. (NASDAQ:KALU), Homeinns Hotel Group (ADR) (NASDAQ:HMIN), AMAG Pharmaceuticals, Inc. (NASDAQ:AMAG), and Stratasys, Ltd. (NASDAQ:SSYS). This group of stocks’ market values matches Builders FirstSource, Inc. (NASDAQ:BLDR)’s market value.

As you can see, these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $195 million. That figure was $232 million in Builders FirstSource, Inc. (NASDAQ:BLDR)’s case. AMAG Pharmaceuticals, Inc. (NASDAQ:AMAG) is the most popular stock in this table. On the other hand, Homeinns Hotel Group (ADR) (NASDAQ:HMIN) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks, Builders FirstSource, Inc. (NASDAQ:BLDR) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.