As industrywide interest jumped, key hedge funds have jumped into KB Home (NYSE:KBH) headfirst. Ken Griffin’s Citadel Investment Group assembled the biggest call position in KB Home (NYSE:KBH). Citadel Investment Group had $2.9 million invested in the company at the end of the quarter. Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital also made a $2.5 million investment in the stock during the quarter. The following funds were also among the new KBH investors: Ken Heebner’s Capital Growth Management, Israel Englander’s Millennium Management, and Steve Cohen’s Point72 Asset Management.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as KB Home (NYSE:KBH) but similarly valued. We will take a look at Scholastic Corp (NASDAQ:SCHL), Gannett Co., Inc. (NYSE:GCI), First Financial Bancorp (NASDAQ:FFBC), and Qualys Inc (NASDAQ:QLYS). This group of stocks’ market caps are closest to KBH’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 13 funds with bullish positions and the average amount invested in these stocks was $92 million. That figure was $170 million in KBH’s case. Gannett Co., Inc. (NYSE:GCI) is the most popular stock in this table, while First Financial Bancorp (NASDAQ:FFBC) is the least popular one with only eight funds having reported long positions. KB Home (NYSE:KBH) 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 GCI might be a better candidate to consider taking a long position in.