Xoom Corp (XOOM) Acquired By PayPal, Investors Think Story Not Over Yet; Is It A Good Time To Buy The Stock?

Details of Hedge Funds’ Activity in Xoom

According to hedge fund intelligence website Insider Monkey, Quincy Lee‘s Ancient Art (Teton Capital) has the largest position in Xoom Corp (NASDAQ:XOOM), worth close to $32.8 million, which is 9.3% of its total 13F portfolio. Mario Cibelli of Marathon Partners has the second-biggest stake in the company, worth $29.2 million.

Peter S. Park‘s Park West Asset Management, Glen Kacher‘s Light Street Capital, and Sam Peters’ Legg Mason Capital Management are some of the other notable hedge funds having stakes in Xoom.

Last month, Ancient Art L.P., managed by Quincy J. Lee sold 336,514 shares of Xoom Corp (NASDAQ:XOOM) in a series of transactions between May 20 and June 8.

Naturally, the big stock gain by Xoom is an innate response by the market to the acquisition announcement. However what isn’t expected is the push by investors past the offered sale price. Given that speculatory push, the rapidly declining growth at Xoom, and the bearish hedge fund sentiment of late, we don’t recommend buying Xoom at this time.

Disclosure: None