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

With a general bullishness amongst the heavyweights, some big names have jumped into Workday Inc (NYSE:WDAY) headfirst. Tybourne Capital Management, managed by Eashwar Krishnan, established the most valuable position in Workday Inc (NYSE:WDAY). Tybourne Capital Management had $91.8 million invested in the company at the end of the quarter. Jane Mendillo’s Harvard Management Co also made a $24.7 million investment in the stock during the quarter. The following funds were also among the new WDAY investors: Alex Sacerdote’s Whale Rock Capital Management, Scott Fine and Peter Richards’s Empire Capital Management, and Israel Englander’s Millennium Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Workday Inc (NYSE:WDAY) but similarly valued. We will take a look at Red Hat, Inc. (NYSE:RHT), Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH), Loews Corporation (NYSE:L), and Best Buy Co., Inc. (NYSE:BBY). This group of stocks’ market valuations are similar to WDAY’s market valuation.

As you can see these stocks had an average of 31.5 hedge funds with bullish positions and the average amount invested in these stocks was $753 million. That figure was $1,019 million in WDAY’s case. Red Hat, Inc. (NYSE:RHT) is the most popular stock in this table. On the other hand Loews Corporation (NYSE:L) is the least popular one with only 19 bullish hedge fund positions. Workday Inc (NYSE:WDAY) 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 RHT might be a better candidate to consider a long position.