Should You Follow the Swarms of Hedge Funds Back Into XPO Logistics Inc (XPO)?

As one would reasonably expect, key money managers have been driving this bullishness. Balyasny Asset Management initiated the most valuable position in XPO Logistics Inc (NYSE:XPO). Balyasny Asset Management had $25.8 million invested in the company at the end of the quarter. Arrowstreet Capital also made a $24.6 million investment in the stock during the quarter. The following funds were also among the new XPO investors: Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital, Mike Masters’ Masters Capital Management, and D E Shaw.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as XPO Logistics Inc (NYSE:XPO) but similarly valued. We will take a look at National Health Investors Inc (NYSE:NHI), American Eagle Outfitters (NYSE:AEO), ITT Corp (NYSE:ITT), and PS Business Parks Inc (NYSE:PSB). This group of stocks’ market caps match XPO’s market cap.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $154 million. That figure was $1.09 billion in XPO’s case. American Eagle Outfitters (NYSE:AEO) is the most popular stock in this table. On the other hand PS Business Parks Inc (NYSE:PSB) is the least popular one with only 7 bullish hedge fund positions. XPO Logistics Inc (NYSE:XPO) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal, in addition to the huge amount of money invested in the stock compared to others with a similar market cap. Given that, it may be wise to consider following hedge funds back into XPO.

Disclosure: None