Should You Buy Wolverine World Wide, Inc. (WWW)?

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As aggregate interest increased, specific money managers were leading the bulls’ herd. Highbridge Capital Management, managed by Glenn Russell Dubin, initiated the biggest position in Wolverine World Wide, Inc. (NYSE:WWW). Highbridge Capital Management had $2.1 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also made a $0.4 million investment in the stock during the quarter. The other funds with new positions in the stock are Paul Tudor Jones’s Tudor Investment Corp, Benjamin A. Smith’s Laurion Capital Management, and Mike Vranos’s Ellington.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Wolverine World Wide, Inc. (NYSE:WWW) but similarly valued. These stocks are WisdomTree Investments, Inc. (NASDAQ:WETF), PNM Resources, Inc. (NYSE:PNM), Sothebys (NYSE:BID), and Brandywine Realty Trust (NYSE:BDN). This group of stocks’ market values are closest to WWW’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
WETF 14 60564 -3
PNM 13 200593 -4
BID 31 899299 4
BDN 17 152885 1

As you can see these stocks had an average of 18.75 hedge funds with bullish positions and the average amount invested in these stocks was $328 million. That figure was $134 million in WWW’s case. Sothebys (NYSE:BID) is the most popular stock in this table. On the other hand PNM Resources, Inc. (NYSE:PNM) is the least popular one with only 13 bullish hedge fund positions. Wolverine World Wide, Inc. (NYSE:WWW) 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 BID might be a better candidate to consider a long position.

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