Is PHH Corporation (PHH) a Good Stock to Buy?

As industrywide interest jumped, some big names were breaking ground themselves. Carlson Capital, led by Clint Carlson, assembled the most valuable position in PHH Corporation (NYSE:PHH). Carlson Capital had $19.4 million invested in the company at the end of the quarter. Larry Foley and Paul Farrell’s Bronson Point Partners also initiated a $6.9 million position during the quarter. The other funds with brand new PHH positions are John Overdeck and David Siegel’s Two Sigma Advisors, Matthew Tewksbury’s Stevens Capital Management, and David Costen Haley’s HBK Investments.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as PHH Corporation (NYSE:PHH) but similarly valued. We will take a look at Cardinal Financial Corporation (NASDAQ:CFNL), Flotek Industries Inc (NYSE:FTK), National Western Life Insurance Company (NASDAQ:NWLI), and Re/Max Holdings Inc (NYSE:RMAX). This group of stocks’ market valuations match PHH’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CFNL 11 70084 2
FTK 16 167644 5
NWLI 7 13390 0
RMAX 4 25202 -2

As you can see these stocks had an average of 10 funds with bullish positions and the average amount invested in these stocks was $69 million, versus $271 million in PHH’s case. Flotek Industries Inc (NYSE:FTK) is the most popular stock in this table. On the other hand Re/Max Holdings Inc (NYSE:RMAX) is the least popular one with only four investors holding shares. Compared to these stocks PHH Corporation (NYSE:PHH) 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.