Is Walker & Dunlop Inc. (WD) Going to Burn These Hedge Funds?

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Seeing as Walker & Dunlop Inc. (NYSE:WD) has experienced falling interest from the entirety of the hedge funds we track, we can see that there exists a select few fund managers that slashed their entire stakes last quarter. Intriguingly, David Brown’s Hawk Ridge Management got rid of the biggest stake of the “upper crust” of funds tracked by Insider Monkey, comprising close to $0.7 million in stock. Louis Navellier’s fund, Navellier & Associates, also dropped its stock, about $0.6 million worth of WD shares.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Walker & Dunlop Inc. (NYSE:WD) but similarly valued. We will take a look at Atrion Corporation (NASDAQ:ATRI), Iridium Communications Inc. (NASDAQ:IRDM), Cresud S.A.C.I.F. y A. (ADR) (NASDAQ:CRESY), and LGI Homes Inc (NASDAQ:LGIH). All of these stocks’ market caps are closest to WD’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ATRI 5 34244 -1
IRDM 11 18908 0
CRESY 10 85875 -1
LGIH 10 54893 0

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $48 million. That figure was $33 million in WD’s case. Iridium Communications Inc. (NASDAQ:IRDM) is the most popular stock in this table. On the other hand Atrion Corporation (NASDAQ:ATRI) is the least popular one with only 5 bullish hedge fund positions. Walker & Dunlop Inc. (NYSE:WD) 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 IRDM might be a better candidate to consider taking a long position in.

Disclosure: none.

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