Is Cabelas Inc (CAB) Going to Burn These Hedge Funds?

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With a general bullishness amongst the heavyweights, some big names have jumped into Cabelas Inc (NYSE:CAB) headfirst. HG Vora Capital Management, managed by Parag Vora, created the most valuable position in Cabelas Inc (NYSE:CAB). According to regulatory filings, the fund had $71.4 million invested in the company at the end of the quarter. Eric Mindich’s Eton Park Capital also made a $46.5 million investment in the stock during the quarter. The other funds with brand new CAB positions are Matthew Knauer and Mina Faltas’s Nokota Management, Jeffrey Smith’s Starboard Value LP, and James Dinan’s York Capital Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Cabelas Inc (NYSE:CAB) but similarly valued. These stocks are Teledyne Technologies Incorporated (NYSE:TDY), Genesee & Wyoming Inc (NYSE:GWR), Umpqua Holdings Corp (NASDAQ:UMPQ), and Assured Guaranty Ltd. (NYSE:AGO). All of these stocks’ market caps are similar to CAB’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TDY 13 125132 3
GWR 12 169440 -4
UMPQ 20 198200 3
AGO 32 410375 0

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 $226 million. That figure was whooping $961 million in CAB’s case. Assured Guaranty Ltd. (NYSE:AGO) is the most popular stock in this table. On the other hand Genesee & Wyoming Inc (NYSE:GWR) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Cabelas Inc (NYSE:CAB) 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.

Disclosure: none.

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