Is Lumber Liquidators Holdings Inc (LL) A Good Stock To Buy?

As one would reasonably expect, key hedge funds were breaking ground themselves. Lonestar Capital Management, led by Jerome L. Simon, created the largest position in Lumber Liquidators Holdings Inc (NYSE:LL). According to regulatory filings, the fund had $4.5 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $4.2 million investment in the stock during the quarter. The other funds with brand new LL positions are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Robert Pohly’s Samlyn Capital, and Zach Schreiber’s Point State Capital.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Lumber Liquidators Holdings Inc (NYSE:LL) but similarly valued. These stocks are A10 Networks Inc (NYSE:ATEN), Healthways, Inc. (NASDAQ:HWAY), Modine Manufacturing Co. (NYSE:MOD), and Stoneridge, Inc. (NYSE:SRI). This group of stocks’ market caps are closest to LL’s market cap.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $121 million. That figure was $62 million in LL’s case. Stoneridge, Inc. (NYSE:SRI) is the most popular stock in this table. On the other hand Modine Manufacturing Co. (NYSE:MOD) is the least popular one with only 10 bullish hedge fund positions. Lumber Liquidators Holdings Inc (NYSE:LL) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard SRI might be a better candidate to consider taking a long position in.

Disclosure: none.