Is WABCO Holdings Inc. (WBC) A Good Stock To Buy?

Seeing as WABCO Holdings Inc. (NYSE:WBC) has faced a falling interest from the smart money, logic holds that there exists a select few funds that elected to cut their positions entirely last quarter. At the top of the heap, Robert Vollero and Gentry T. Beach’s Vollero Beach Capital Partners dumped the largest investment of the “upper crust” of funds followed by Insider Monkey, valued at close to $21.3 million in stock, and Eric Bannasch’s Cadian Capital was right behind this move, as the fund dumped about $10.3 million worth of shares. These moves are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as WABCO Holdings Inc. (NYSE:WBC) but similarly valued. These stocks are EQT GP Holdings LP (NYSE:EQGP), American Financial Group (NYSE:AFG), W.P. Carey Inc. REIT (NYSE:WPC), and Toll Brothers Inc (NYSE:TOL). This group of stocks’ market valuations matches WABCO Holdings Inc. (NYSE:WBC)’s market valuation.

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 $228 million. That figure was $1.27 billion in WABCO Holdings Inc. (NYSE:WBC)’s case. Toll Brothers Inc (NYSE:TOL) is the most popular stock in this table. On the other hand, EQT GP Holdings LP (NYSE:EQGP) is the least popular one with only 5 bullish hedge fund positions. WABCO Holdings Inc. (NYSE:WBC) 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, Toll Brothers Inc (NYSE:TOL) might be a better candidate to consider a long position.