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Yahoo! Inc. (YHOO) Tumbles As Investors Flee Alibaba (BABA)

Key hedge funds jumped into Yahoo! Inc. (NASDAQ:YHOO) headfirst in Q1. Iridian Asset Management, managed by David Cohen and Harold Levy, created the most valuable position in Yahoo! Inc. (NASDAQ:YHOO), having $318.4 million invested in the company at the end of the quarter. Owl Creek Asset Management also initiated a $154.9 million position of call options during the quarter. The other funds with new positions in the stock are Josh Resnick’s Jericho Capital Asset Management, Steve Cohen’s Point72 Asset Management, and James Dinan’s York Capital Management.

Let’s check out hedge fund activity in other stocks similar to Yahoo! Inc. (NASDAQ:YHOO). We will take a look at Estee Lauder Companies Inc (NYSE:EL), Travelers Companies Inc (NYSE:TRV), Brookfield Asset Management Inc. (USA) (NYSE:BAM), and Twenty-First Century Fox Inc (NASDAQ:FOXA). This group of stocks’ market values are similar to YHOO’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
EL 28 598209 2
TRV 28 531046 4
BAM 14 1183519 -6
FOXA 46 3860696 -4

As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $1.54 billion. That figure was $7.92 billion in YHOO’s case. Twenty-First Century Fox Inc (NASDAQ:FOXA) is the most popular stock in this table. On the other hand Brookfield Asset Management Inc. (USA) (NYSE:BAM) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks Yahoo! Inc. (NASDAQ:YHOO) 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

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