Workday Inc (WDAY): Are Hedge Funds Right About This Stock?

Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track more than 700 prominent money managers and analyze their quarterly 13F filings. The stocks that are heavily bought by hedge funds historically outperformed the market, though there is no shortage of high profile gigantic failures like hedge funds’ recent losses in Valeant. Let’s take a closer look at what the funds we track think about Workday Inc (NYSE:WDAY) in this article.

Workday Inc was in 28 hedge funds’ portfolios at the end of September. WDAY shareholders have witnessed an increase in hedge fund interest recently. There were 26 hedge funds in our database with WDAY holdings at the end of the previous quarter. At the end of this article we will also compare WDAY to other stocks including Red Hat, Inc. (NYSE:RHT), Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH), and Loews Corporation (NYSE:L) to get a better sense of its popularity.

With all of this in mind, we’re going to review the key action regarding Workday Inc (NYSE:WDAY).

How are hedge funds trading Workday Inc (NYSE:WDAY)?

At the end of the third quarter, a total of 28 of the hedge funds tracked by Insider Monkey were long this stock, a change of 8% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were upping their stakes significantly (or already accumulated large positions).

According to Insider Monkey’s hedge fund database, David Goel and Paul Ferri’s Matrix Capital Management has the biggest position in Workday Inc (NYSE:WDAY), worth close to $243.6 million, comprising 11.3% of its total 13F portfolio. The second most bullish fund manager is Criterion Capital, led by Christopher Lord, holding a $243.2 million position; the fund has 8.3% of its 13F portfolio invested in the stock. Some other peers that are bullish comprise John Griffin’s Blue Ridge Capital, Eashwar Krishnan’s Tybourne Capital Management and Christopher Lyle’s SCGE Management.