Do Hedge Funds Love Eldorado Resorts Inc (ERI)?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that said goodbye to their entire stakes in the stock during the third quarter. At the top of the heap, Ira Unschuld’s Brant Point Investment Management said goodbye to the largest stake of all the hedgies tracked by Insider Monkey, totaling an estimated $4.1 million in stock. John Fichthorn’s fund, Dialectic Capital Management, also dropped its stock, about $1.1 million worth.

Let’s go over hedge fund activity in other stocks similar to Eldorado Resorts Inc (NASDAQ:ERI). We will take a look at Northstar Realty Europe Corp (NYSE:NRE), New York Mortgage Trust, Inc. (NASDAQ:NYMT), Manitowoc Company, Inc. (NYSE:MTW), and Intra-Cellular Therapies Inc (NASDAQ:ITCI). All of these stocks’ market caps are closest to ERI’s market cap.

As you can see these stocks had an average of 15 hedge funds with long positions and the average amount invested in these stocks was $100 million, versus $207 million in ERI’s case. Manitowoc Company, Inc. (NYSE:MTW) is the most popular stock in this table. On the other hand New York Mortgage Trust, Inc. (NASDAQ:NYMT) is the least popular one with only three funds holding shares. Eldorado Resorts Inc (NASDAQ:ERI) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Manitowoc Company, Inc. (NYSE:MTW) might be a better candidate to consider taking a long position in.

Disclosure: none