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.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MPWR 16 220382 0
RDC 21 481508 -3
WCC 20 351076 -3
LPI 20 226912 -3

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.