Should You Go Long WEX Inc (WEX)?

Now, some big names were leading the bulls’ herd. Echo Street Capital Management, managed by Greg Poole, assembled the largest position in WEX Inc (NYSE:WEX). Echo Street Capital Management had $4.3 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also initiated a $2.7 million position during the quarter. The other funds with new positions in the stock are Cliff Asness’s AQR Capital Management, George Hall’s Clinton Group, and Paul Marshall and Ian Wace’s Marshall Wace LLP.

Let’s now review hedge fund activity in other stocks similar to WEX Inc (NYSE:WEX). These stocks are MDU Resources Group Inc (NYSE:MDU), Braskem SA (ADR) (NYSE:BAK), Tribune Media Co (NYSE:TRCO), and TreeHouse Foods Inc. (NYSE:THS). This group of stocks’ market valuations match WEX’s market valuation.

As you can see these stocks had an average of 16.25 hedge funds with bullish positions and the average amount invested in these stocks was $462 million. That figure was $170 million in WEX’s case. Tribune Media Co (NYSE:TRCO) is the most popular stock in this table, while Braskem SA (ADR) (NYSE:BAK) is the least popular one with only five bullish hedge fund positions. WEX Inc (NYSE:WEX) 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 TRCO might be a better candidate to consider a long position.