As aggregate interest increased, specific money managers were breaking ground themselves. Covalent Capital Partners, managed by Robert Hockett, created the most valuable position in Taylor Morrison Home Corp (NYSE:TMHC). Covalent Capital Partners had $5.4 million invested in the company at the end of the quarter. Chao Ku’s Nine Chapters Capital Management also made an $2.2 million investment in the stock during the quarter. The following funds were also among the new TMHC investors: Michael Platt and William Reeves’s BlueCrest Capital Mgmt., Cliff Asness’s AQR Capital Management, and Paul Tudor Jones’s Tudor Investment Corp.
Let’s now take a look at hedge fund activity in other stocks similar to Taylor Morrison Home Corp (NYSE:TMHC). These stocks are XPO Logistics Inc (NYSE:XPO), Convergys Corporation (NYSE:CVG), F.N.B. Corp (NYSE:FNB), and Sunedison Inc (NYSE:SUNE). This group of stocks’ market values are closest to TMHC’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| XPO | 46 | 866732 | 3 |
| CVG | 20 | 147888 | 2 |
| FNB | 12 | 57118 | 3 |
| SUNE | 73 | 1056855 | -20 |
As you can see these stocks had an average of 38 hedge funds with bullish positions and the average amount invested in these stocks was $532 million. That figure was just $132 million in TMHC’s case. Sunedison Inc (NYSE:SUNE) is the most popular stock in this table, while F.N.B. Corp (NYSE:FNB) is the least popular one with only 12 bullish hedge fund positions. Taylor Morrison Home Corp (NYSE:TMHC) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard SUNE might be a better candidate to consider a long position.
