U.S. Markets closed

Zillow Jumps On Bullish Comment From Hedge Fund Manager

John Seward

Zillow Inc (NASDAQ: Z) shares gained more than 6 percent Wednesday after a hedge fund manager said the online real estate company could hit a value of $50 billion.

Michael Messara, senior portfolio manager Caledonia Investments Pty Ltd, made the comment reported by Reuters Wednesday at a conference in London.

Seattle-based Zillow traded recently at $124.48, up 4.6 percent.

Zillow, with a current market capitalization of $5 billion, expects to merge next month with competitor Trulia Inc (NYSE: TRLA), which has a market cap of $2.03 billion.

Caledonia, based in Sydney, Australia, as of September 30 owned about 6.79 million of Zillow's 34.44 million shares outstanding, according to its latest 13F filing. That's up from about 6.5 million on June 30.

Caledonia also held 10.16 million of Trulia's 37.8 million shares outstanding as of September 30.

Zillow expects to acquire Trulia for about $3.5 billion in a deal set for shareholder approval December 18.

See more from Benzinga

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.