Should You Buy HubSpot Inc (HUBS)?

As one would reasonably expect, some big names were leading the bulls’ herd. Light Street Capital created the most valuable position in HubSpot Inc (NYSE:HUBS). Drew Cupps’s Cupps Capital Management also initiated a $3.2 million position during the quarter. The other funds with brand new HUBS positions are Jane Mendillo’s Harvard Management Co and David Costen Haley’s HBK Investments.

Let’s now take a look at hedge fund activity in other stocks similar to HubSpot Inc (NYSE:HUBS). We will take a look at Trustmark Corp (NASDAQ:TRMK), WPX Energy Inc (NYSE:WPX), OmniVision Technologies, Inc. (NASDAQ:OVTI), and Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY). All of these stocks’ market caps are closest to HUBS’s market cap.

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $234 million. That figure was just $53 million in HUBS’s case. WPX Energy Inc (NYSE:WPX) is the most popular stock in this table. On the other hand Trustmark Corp (NASDAQ:TRMK) is the least popular one with only 8 bullish hedge fund positions. HubSpot Inc (NYSE:HUBS) 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 WPX might be a better candidate to consider for a closer analysis.