Wesco Aircraft Holdings Inc (WAIR): Are Hedge Funds Right About This Stock?

Because Wesco Aircraft Holdings Inc (NYSE:WAIR) has witnessed falling interest from the entirety of the hedge funds we track, it’s easy to see that there is a sect of money managers who sold off their entire stakes in the third quarter. It’s worth mentioning that Will Snellings’s Marianas Fund Management said goodbye to the biggest stake of all the hedgies followed by Insider Monkey, comprising close to $5.3 million in stock, and Rob Romero’s Connective Capital Management was right behind this move, as the fund sold off about $1.4 million worth of shares. These bearish behaviors are important to note, as total hedge fund interest was cut by 4 funds in the third quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Wesco Aircraft Holdings Inc (NYSE:WAIR) but similarly valued. These stocks are BBCN Bancorp, Inc. (NASDAQ:BBCN), TopBuild Corp (NYSE:BLD), Talmer Bancorp Inc (NASDAQ:TLMR), and First Financial Bancorp (NASDAQ:FFBC). This group of stocks’ market caps are closest to WAIR’s market cap.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $100 million, compared to $256 million in WAIR’s case. TopBuild Corp (NYSE:BLD) is the most popular stock in this table. On the other hand BBCN Bancorp, Inc. (NASDAQ:BBCN) is the least popular one with only 7 bullish hedge fund positions. Wesco Aircraft Holdings Inc (NYSE:WAIR) 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 BLD might be a better candidate to consider a long position.