Is William Lyon Homes (WLH) A Good Stock To Buy?

Consequently, key money managers were breaking ground themselves. Arbiter Partners Capital Management, led by Paul J. Isaac, assembled the most outsized position in William Lyon Homes (NYSE:WLH). Arbiter Partners Capital Management had $8.3 million invested in the company at the end of the quarter. James Dinan’s York Capital Management also initiated a $3.7 million position during the quarter. The other funds with new positions in the stock are Geoffrey Raynor’s Q Investments (Specter Holdings), Porter Collins, Daniel Moses, and Vincent Daniel’s Seawolf Capital, and Eric Halet and Davide Serra’s Algebris Investments.

Let’s now review hedge fund activity in other stocks similar to William Lyon Homes (NYSE:WLH). We will take a look at Clean Energy Fuels Corp (NASDAQ:CLNE), Francesca’s Holdings Corp (NASDAQ:FRAN), CoLucid Pharmaceuticals Inc (NASDAQ:CLCD), and Sanchez Energy Corp (NYSE:SN). All of these stocks’ market caps are closest to WLH’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CLNE 11 31851 -1
FRAN 24 141500 3
CLCD 18 118710 18
SN 12 64128 0

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $89 million. That figure was $299 million in WLH’s case. Francesca’s Holdings Corp (NASDAQ:FRAN) is the most popular stock in this table. On the other hand Clean Energy Fuels Corp (NASDAQ:CLNE) is the least popular one with only 11 bullish hedge fund positions. William Lyon Homes (NYSE:WLH) 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 FRAN might be a better candidate to consider taking a long position in.

Disclosure: None