Is Louisiana-Pacific Corporation (LPX) A Good Stock To Buy?

With a general bullishness amongst the heavyweights, key hedge funds have been driving this bullishness. Balyasny Asset Management, managed by Dmitry Balyasny, created the biggest position in Louisiana-Pacific Corporation (NYSE:LPX). Balyasny Asset Management had $11.1 million invested in the company at the end of the quarter. David Keidan’s Buckingham Capital Management also made a $10.6 million investment in the stock during the quarter. The following funds were also among the new LPX investors: Douglas Dillard Jr. and Raj D. Venkatesan’s Standard Pacific Capital, D E Shaw, and Jacob Gottlieb’s Visium Asset Management.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Louisiana-Pacific Corporation (NYSE:LPX) but similarly valued. These stocks are Monolithic Power Systems, Inc. (NASDAQ:MPWR), Rowan Companies PLC (NYSE:RDC), WESCO International, Inc. (NYSE:WCC), and Laredo Petroleum Inc (NYSE:LPI). This group of stocks’ market values resemble LPX’s market value.

As you can see these stocks had an average of 19.25 hedge funds with bullish positions and the average amount invested in these stocks was $320 million. That figure was $327 million in LPX’s case. Rowan Companies PLC (NYSE:RDC) is the most popular stock in this table. On the other hand Monolithic Power Systems, Inc. (NASDAQ:MPWR) is the least popular one with only 16 bullish hedge fund positions. Louisiana-Pacific Corporation (NYSE:LPX) 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 RDC might be a better candidate to consider a long position.