Should You Buy Web.com Group Inc (WEB)?

As industry-wide interest jumped, specific money managers were leading the bulls’ herd. Gotham Asset Management, managed by Joel Greenblatt, assembled the most outsized position in Web.com Group Inc (NASDAQ:WEB). Gotham Asset Management had $2.3 million invested in the company at the end of the quarter. Neil Chriss’s Hutchin Hill Capital also initiated a $1.7 million position during the quarter. The other funds with new positions in the stock are Paul Marshall and Ian Wace’s Marshall Wace LLP, Matthew Tewksbury’s Stevens Capital Management, and Benjamin A. Smith’s Laurion Capital Management.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Web.com Group Inc (NASDAQ:WEB) but similarly valued. We will take a look at Wright Medical Group Inc (NASDAQ:WMGI), istar Inc (NYSE:STAR), Bankrate Inc (NYSE:RATE), and Franklin Street Properties Corp. (NYSEMKT:FSP). This group of stocks’ market caps match WEB’s market cap.

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $239 million. That figure was $249 million in WEB’s case. Wright Medical Group Inc (NASDAQ:WMGI) is the most popular stock in this table with 23 funds reporting long positions. On the other hand Franklin Street Properties Corp. (NYSEMKT:FSP) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks Web.com Group Inc (NASDAQ:WEB) 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.