Should You Buy Eagle Materials, Inc. (EXP)?

Now, key money managers were leading the bulls’ herd. Appaloosa Management LP, managed by David Tepper, established a position in Eagle Materials, Inc. (NYSE:EXP). Appaloosa Management LP had $53 million invested in the company at the end of the quarter. Stephen Loukas, David A. Lorber, Zachary George’s FrontFour Capital Group also initiated a $22.4 million position during the quarter. The following funds were also among the new EXP investors: Andre F. Perold’s HighVista Strategies, Benjamin A. Smith’s Laurion Capital Management, and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s now take a look at hedge fund activity in other stocks similar to Eagle Materials, Inc. (NYSE:EXP). We will take a look at Prosperity Bancshares, Inc. (NYSE:PB), Youku Tudou Inc (ADR) (NYSE:YOKU), Techne Corporation (NASDAQ:TECH), and GNC Holdings Inc (NYSE:GNC). This group of stocks’ market caps resemble EXP’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PB 16 121516 -1
YOKU 15 339985 -5
TECH 9 186773 -3
GNC 42 1172137 2

As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $455 million. That figure was $728 million in EXP’s case. GNC Holdings Inc (NYSE:GNC) is the most popular stock in this table. On the other hand Techne Corporation (NASDAQ:TECH) is the least popular one with only 9 bullish hedge fund positions. Eagle Materials, Inc. (NYSE:EXP) is not the most popular stock in this group, but it has still attracted above average attention from investors. Although this may imply it is a stock worth considering, we’d rather spend our time researching stocks that hedge funds are piling on. In this case, GNC might be a better alternative.