Should You Buy LendingTree Inc (TREE)?

As industrywide interest jumped, key hedge funds have been driving this bullishness. Whale Rock Capital Management, managed by Alex Sacerdote, assembled the largest position in LendingTree Inc (NASDAQ:TREE). Whale Rock Capital Management had $5.5 million invested in the company at the end of the quarter. David Costen Haley’s HBK Investments also made a $2.1 million investment in the stock during the quarter. The other funds with new positions in the stock are Chao Ku’s Nine Chapters Capital Management, William C. Martin’s Raging Capital Management, and Glenn Russell Dubin’s Highbridge Capital Management.

Let’s also examine hedge fund activity in other stocks similar to LendingTree Inc. (NASDAQ:TREE). We will take a look at Kearny Financial Corp. (NASDAQ:KRNY), Caesarstone Sdot-Yam Ltd (NASDAQ:CSTE), Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB), and Trex Company, Inc. (NYSE:TREX). This group of stocks’ market caps match TREE’s market cap.

As you can see these stocks had an average of 20.25 hedge funds with bullish positions and the average amount invested in these stocks was $120 million. That figure was $124 million in TREE’s case. Kearny Financial Corp. (NASDAQ:KRNY) is the most popular stock in this table. On the other hand Trex Company, Inc. (NYSE:TREX) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks LendingTree Inc. (NASDAQ:TREE) 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.