While Wayfair Falls, 1 Hedge Fund Is Bullish

It seems like the rally in shares of Wayfair Inc W witnessed on Monday was meant just for trapping the bulls before the company declared its first quarterly results post-IPO.

Shares of Wayfair closed at $23.66 on Tuesday, eroding all of the gains it made on Monday and closing 15.88 percent down on the day.

The company reported revenues of $336.2 million, up 41.2 percent year-on-year and above what analysts had expected.

However, the disappointment came from the losses posted by the company, including an adjusted EBITDA loss of $18.3 million, below the analysts' expectations of $16.3 million. The company declared an adjusted loss of $0.29 per share, compared to -$0.19 per share in the same period last year.

Another thing that pushed the stock lower: The forward guidance given by the company's management in the conference call following the results. Executives told investors that revenue for the current quarter is expected to be in the range of $355 million to $370 million; analyst consensus is $365.7 million.

Though short-term investors may be ditching the stock in a hurry, institutional investors and hedge funds are finding the stock promising. One of the most renowned hedge funds on the Street, Viking Global, recently reported purchasing 2,400 shares of class A common stock of the company in a filing with the SEC.

According to the agency, the firm holds 12.6 percent of Wayfair's outstanding shares.