Is D.R. Horton, Inc. (DHI) Going To Burn These Hedge Funds?

Now, specific money managers have been driving this bullishness. Israel Englander’s Millennium Management assembled the biggest position in D.R. Horton, Inc. (NYSE:DHI). Millennium Management had $73.1 million invested in the company at the end of the quarter. Crispin Odey’s Odey Asset Management Group also made a $47.5 million investment in the stock during the quarter. The following funds were also among the new DHI investors: Jim Simons’ Renaissance Technologies, D. E. Shaw’s D E Shaw, and Steve Cohen’s Point72 Asset Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as D.R. Horton, Inc. (NYSE:DHI) but similarly valued. We will take a look at Extra Space Storage, Inc. (NYSE:EXR), CGI Group Inc. (USA) (NYSE:GIB), Alliance Data Systems Corporation (NYSE:ADS), and Motorola Solutions Inc (NYSE:MSI). This group of stocks’ market valuations match DHI’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
EXR 21 96553 1
GIB 16 121641 1
ADS 32 1479453 -1
MSI 28 1170738 -1

As you can see these stocks had an average of 24 funds with bullish positions and the average amount invested in these stocks was $717 million. That figure was $1.10 billion in DHI’s case. Alliance Data Systems Corporation (NYSE:ADS) is the most popular stock in this table with 32 funds holding shares. On the other hand, CGI Group Inc. (USA) (NYSE:GIB) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks D.R. Horton, Inc. (NYSE:DHI) 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.