Is Wyndham Worldwide Corporation (NYSE:WYN) a good stock to buy right now? We at Insider Monkey like to examine what billionaires and hedge funds think of a company before doing days of research on it. Given their 2 and 20 payment structure, hedge funds have more resources than the average investor. The funds have access to expert networks and get tips from industry insiders. They also have numerous Ivy League graduates and MBAs. Like everyone else, hedge funds perform miserably at times, but their consensus picks have historically outperformed the market after risk adjustments.
Wyndham Worldwide Corporation (NYSE:WYN) shareholders have witnessed an increase in support from the world’s most elite money managers lately. WYN was in 29 hedge funds’ portfolios at the end of the third quarter of 2015. There were 28 hedge funds in our database with WYN holdings at the end of the previous quarter. At the end of this article we will also compare WYN to other stocks including PVH Corp (NYSE:PVH), L-3 Communications Holdings, Inc. (NYSE:LLL), and Total System Services, Inc. (NYSE:TSS) to get a better sense of its popularity.
At the moment there are many methods stock market investors have at their disposal to evaluate their stock investments. A pair of the most useful methods are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the top picks of the best hedge fund managers can outpace the S&P 500 by a significant margin (see the details here).
Keeping this in mind, let’s view the key action regarding Wyndham Worldwide Corporation (NYSE:WYN).
Hedge fund activity in Wyndham Worldwide Corporation (NYSE:WYN)
At the end of the third quarter, a total of 29 of the hedge funds tracked by Insider Monkey were long this stock, a change of 4% from the previous quarter. With hedgies’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, David Cohen and Harold Levy’s Iridian Asset Management has the largest position in Wyndham Worldwide Corporation (NYSE:WYN), worth close to $400.3 million, comprising 3.4% of its total 13F portfolio. On Iridian Asset Management’s heels is D E Shaw, holding a $105.2 million position; 0.2% of its 13F portfolio is allocated to the company. Remaining hedge funds and institutional investors with similar optimism include Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital, Cliff Asness’ AQR Capital Management and Joel Greenblatt’s Gotham Asset Management.