Do Hedge Funds Love Dollar Tree, Inc. (DLTR)?

According to Insider Monkey’s hedge fund database, Stephen Mandel’s Lone Pine Capital has the largest position in Dollar Tree, Inc. (NASDAQ:DLTR), worth close to $1.0189 billion, comprising 4.4% of its total 13F portfolio. Sitting at the No. 2 spot is Akre Capital Management, led by Charles Akre, holding a $323.1 million position; the fund has 7.2% of its 13F portfolio invested in the stock. Some other hedge funds and institutional investors that are bullish contain Phill Gross and Robert Atchinson’s Adage Capital Management, Peter Adam Hochfelder’s Brahman Capital and Eric W. Mandelblatt’s Soroban Capital Partners.

As industry-wide interest jumped, key money managers have been driving this bullishness. Soroban Capital Partners, managed by Eric W. Mandelblatt, established the largest position in Dollar Tree, Inc. (NASDAQ:DLTR). Soroban Capital Partners had $179.5 million invested in the company at the end of the fourth quarter. John Griffin’s Blue Ridge Capital also initiated a $140.2 million position during the quarter. The following funds were also among the new DLTR investors: Gabriel Plotkin’s Melvin Capital Management, Ken Heebner’s Capital Growth Management, and Julian Robertson’s Tiger Management.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Dollar Tree, Inc. (NASDAQ:DLTR) but similarly valued. We will take a look at T. Rowe Price Group, Inc. (NASDAQ:TROW), Interactive Brokers Group, Inc. (NASDAQ:IBKR), Hartford Financial Services Group Inc (NYSE:HIG), and HCP, Inc. (NYSE:HCP). This group of stocks’ market values match DLTR’s market value.

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 $676 million. That figure was $4.29 billion in DLTR’s case. Hartford Financial Services Group Inc (NYSE:HIG) is the most popular stock in this table. On the other hand, HCP, Inc. (NYSE:HCP) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Dollar Tree, Inc. (NASDAQ:DLTR) 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