What Do Hedge Funds Think of LKQ Corporation (LKQ)?

With a general bullishness amongst the heavyweights, some big names have jumped into LKQ Corporation (NASDAQ:LKQ) headfirst. Pennant Capital Management, managed by Alan Fournier, initiated the most outsized position in LKQ Corporation (NASDAQ:LKQ). Pennant Capital Management had $133.4 million invested in the company at the end of the quarter. Jim Simons’ Renaissance Technologies also made a $6 million investment in the stock during the quarter. The other funds with brand new LKQ positions are Neil Chriss’s Hutchin Hill Capital, Matthew Tewksbury’s Stevens Capital Management, and George Hall’s Clinton Group.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as LKQ Corporation (NASDAQ:LKQ) but similarly valued. We will take a look at Western Gas Equity Partners LP (NYSE:WGP), Ball Corporation (NYSE:BLL), Markwest Energy Partners LP (NYSE:MWE), and Quintiles Transnational Holdings Inc (NYSE:Q). This group of stocks’ market values match LKQ’s market value.

As you can see these stocks had an average of 24.5 hedge funds with bullish positions and the average amount invested in these stocks was $535 million. That figure was $695 million in LKQ’s case. Ball Corporation (NYSE:BLL) is the most popular stock in this table. On the other hand Western Gas Equity Partners LP (NYSE:WGP) is the least popular one with only 9 bullish hedge fund positions. LKQ Corporation (NASDAQ:LKQ) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard BLL might be a better candidate to consider a long position.