Is WMIH Corp (WMIH) A Good Stock To Buy?

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Consequently, key hedge funds were leading the bulls’ herd. Appaloosa Management LP, managed by David Tepper, initiated the most outsized position in WMIH Corp (NASDAQ:WMIH). Appaloosa Management LP had $43.6 million invested in the company at the end of the quarter. Jonathan Savitz’s Greywolf Capital Management also made a $40.6 million investment in the stock during the quarter. The other funds with brand new WMIH positions are Jeff Buick’s Trishield Capital Management, Anthony Bozza’s Lakewood Capital Management, and Mark T. Gallogly’s Centerbridge Partners.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as WMIH Corp (NASDAQ:WMIH) but similarly valued. These stocks are Navios Maritime Acquisition Corp (NYSE:NNA), Kelly Services, Inc. (NASDAQ:KELYA), Diana Shipping Inc. (NYSE:DSX), and Alamo Group, Inc. (NYSE:ALG). This group of stocks’ market caps match WMIH’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NNA 11 10317 -1
KELYA 10 26872 1
DSX 12 47730 -3
ALG 7 144749 -2

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $57 million. That figure was $169 million in WMIH’s case. Diana Shipping Inc. (NYSE:DSX) is the most popular stock in this table. On the other hand Alamo Group, Inc. (NYSE:ALG) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks WMIH Corp (NASDAQ:WMIH) 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.

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