Why Dollar Tree, Inc. (DLTR)’s Stock Surged on Thursday?

Scopus Asset Management, managed by Alexander Mitchell, initiated the largest position in Dollar Tree, Inc. (NASDAQ:DLTR). Scopus Asset Management had $79.2 million invested in the company at the end of the quarter. Kamyar Khajavi’s MIK Capital also made a $57.3 million investment in the stock during the quarter. The following funds were also among the new DLTR investors: Gabriel Plotkin’s Melvin Capital Management, Eric Chen’s Antipodean Advisors, and Benjamin A. Smith’s Laurion Capital Management.

Let’s now review hedge fund activity in other stocks similar to Dollar Tree, Inc. (NASDAQ:DLTR). We will take a look at ConAgra Foods, Inc. (NYSE:CAG), Sasol Limited (ADR) (NYSE:SSL), NVIDIA Corporation (NASDAQ:NVDA), and TELUS Corporation (USA) (NYSE:TU). This group of stocks’ market valuations are closest to DLTR’s market valuation.

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $1353 million. That figure was $4202 million in DLTR’s case. NVIDIA Corporation (NASDAQ:NVDA) is the most popular stock in this table. On the other hand TELUS Corporation (USA) (NYSE:TU) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Dollar Tree, Inc. (NASDAQ:DLTR) 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