What Explains the Huge Jump in Louisiana-Pacific Corporation (LPX)’s Hedge Fund Ownership?

Consequently, specific money managers were leading the bulls’ herd. Gotham Asset Management, managed by Joel Greenblatt, initiated the largest position in Louisiana-Pacific Corporation (NYSE:LPX). Gotham Asset Management had $15.9 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also made a $11.9 million investment in the stock during the quarter. The other funds with brand new LPX positions are Ken Grossman and Glen Schneider’s SG Capital Management, John Overdeck and David Siegel’s Two Sigma Advisors, and Steve Cohen’s Point72 Asset Management.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Louisiana-Pacific Corporation (NYSE:LPX) but similarly valued. These stocks are Virgin America Inc (NASDAQ:VA), Ligand Pharmaceuticals Inc. (NASDAQ:LGND), Grifols SA, Barcelona (NASDAQ:GRFS), and Wintrust Financial Corp (NASDAQ:WTFC). This group of stocks’ market valuations match LPX’s market valuation.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $365 million. That figure was $460 million in LPX’s case. Virgin America Inc (NASDAQ:VA) is the most popular stock in this table. On the other hand Grifols SA, Barcelona (NASDAQ:GRFS) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Louisiana-Pacific Corporation (NYSE:LPX) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None