As one would reasonably expect, key money managers have been driving this bullishness. Coatue Management, managed by Philippe Laffont, created the most outsized position in Zillow Inc (NASDAQ:Z). Coatue Management had $71.8 million invested in the company at the end of the quarter. Brad Gerstner’s Altimeter Capital Management also initiated a $46.4 million position during the quarter. The other funds with brand new Z positions are Christopher R. Hansen’s Valiant Capital, David Greenspan’s Slate Path Capital, and Kerr Neilson’s Platinum Asset Management.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Zillow Group Inc (NASDAQ:Z) but similarly valued. These stocks are Quanta Services Inc (NYSE:PWR), Acadia Healthcare Company Inc (NASDAQ:ACHC), Carter’s, Inc. (NYSE:CRI), and Liberty Property Trust (NYSE:LPT). All of these stocks’ market caps are similar to Z’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 29.75 hedge funds with bullish positions and the average amount invested in these stocks was $474 million. That figure was $392 million in Z’s case. Carter’s, Inc. (NYSE:CRI) is the most popular stock in this table. On the other hand Liberty Property Trust (NYSE:LPT) is the least popular one with only 19 bullish hedge fund positions. Zillow Group Inc (NASDAQ:Z) 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 CRI might be a better candidate to consider a long position.