Five Furniture Stocks Hedge Funds Like

#3. Williams-Sonoma Inc. (NYSE:WSM)

 – Investors with long positions (as of March 31): 31

 – Aggregate value of investors’ holdings (as of March 31): $280.74 Million

Williams-Sonoma Inc. (NYSE:WSM) received a lot of attention from the segment of the hedge fund industry monitored by Insider Monkey during the first quarter, as the number of asset managers invested in the company increased to 31 from 21 quarter-over-quarter. However, as with Bed Bath & Beyond, the overall value of those managers’ equity investments in Williams-Sonoma plunged quarter-over-quarter, by 57%, only partially owing to a 5% drop in the company’s stock. Therefore, the hedge funds tracked by our team, which owned 6% of the company’s shares, were actually fleeing the high-end retailer, which sells goods for the home. Morningstar analysts believe the home furnishings retailer is currently trading at a discount, claiming that the company’s operating margin could keep rising at a higher than expected rate due to rewarding spending on e-commerce and supply chain initiatives. Jim Simons’ Renaissance Technologies reported owning 731,700 shares of Williams-Sonoma Inc. (NYSE:WSM) during the latest round of 13Fs.

#2. Tempur Sealy International Inc. (NYSE:TPX)

 – Investors with long positions (as of March 31): 33

 – Aggregate value of investors’ holdings (as of March 31): $1.21 Billion

Tempur Sealy International Inc. (NYSE:TPX) lost some appeal among the hedge funds followed by the Insider Monkey team during the January-to-March quarter, as the number of funds invested in the company dropped to 33 from 36 quarter-over-quarter. Meanwhile, the aggregate value of those funds’ equity investments in Tempur Sealy rose to $1.21 billion from $1.13 billion despite a nearly 14% drop in the value of the company’s shares. Hence, in complete contrast to the previous two stocks, hedge funds were actually bullish on the company during the first quarter, despite a few firms closing small stakes. The market capitalization of the world’s largest bedding provider has declined by nearly 13% since the start of 2016. While some previously believed that mattress providers would be immune to the fast-growing influence of e-commerce, Tempur Sealy has been facing increasing competitive pressure from online mattress sellers shipping mattresses to customers in small-sized boxes. Rob Citrone’s Discovery Capital Management had 2.62 million shares of Tempur Sealy International Inc. (NYSE:TPX) in its portfolio at the end of March.

#1. Mohawk Industries Inc. (NYSE:MHK)

 – Investors with long positions (as of March 31): 49

 – Aggregate value of investors’ holdings (as of March 31): $2.32 Billion

Our data shows that Mohawk Industries Inc. (NYSE:MHK) fell out of favor with the asset managers monitored by Insider Monkey during the first quarter of the year, as the number of firms with stakes in the company fell to 49 from 55 quarter-over-quarter. Correspondingly, the aggregate value of those stakes shrank to $2.32 billion from $2.75 billion. It should be noted that those 49 asset managers hoarded roughly 16% of the company’s outstanding shares. The shares of the flooring manufacturing company for residential and commercial customers are 4% in the green so far this year. Mohawk Industries posted net sales of $2.17 billion for the three months that ended April 2, up from $1.88 billion reported a year earlier. The increase was primarily driven by higher sales volume from acquisitions, as well as higher legacy sales. Dan Loeb’s Third Point LLC reported ownership of exactly 2.00 million shares of Mohawk Industries Inc. (NYSE:MHK) in its latest 13F filing.

Disclosure: None