Is Werner Enterprises, Inc. (WERN) Going to Burn These Hedge Funds?

Page 2 of 2

As industry-wide interest jumped, key money managers were leading the bulls’ herd. Buckingham Capital Management, led by David Keidan, assembled the most valuable position in Werner Enterprises, Inc. (NASDAQ:WERN). Buckingham Capital Management had $2 million invested in the company at the end of the quarter. Matthew Tewksbury’s Stevens Capital Management also made a $1.4 million investment in the stock during the quarter. The other funds with new positions in the stock are Glenn Russell Dubin’s Highbridge Capital Management, Dmitry Balyasny’s Balyasny Asset Management, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s also examine hedge fund activity in other stocks similar to Werner Enterprises, Inc. (NASDAQ:WERN). These stocks are Cambrex Corporation (NYSE:CBM), Insperity Inc (NYSE:NSP), Avon Products, Inc. (NYSE:AVP), and South State Corporation (NASDAQ:SSB). This group of stocks’ market values are closest to WERN’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CBM 19 46595 2
NSP 18 196413 -2
AVP 26 375467 1
SSB 11 46544 -3

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $166 million. That figure was $81 million in WERN’s case. Avon Products, Inc. (NYSE:AVP) is the most popular stock in this table. On the other hand South State Corporation (NASDAQ:SSB) is the least popular one with only 11 bullish hedge fund positions. Werner Enterprises, Inc. (NASDAQ:WERN) 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 AVP might be a better candidate to consider taking a long position in.

Disclosure: None

Page 2 of 2