Emcor Group Inc (EME): Are Hedge Funds Right About This Stock?

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Judging by the fact that Emcor Group Inc (NYSE:EME) has gone through falling interest from the smart money, we can see that there were a few hedgies that decided to sell off their positions entirely during the third quarter. At the top of the heap, Glenn Russell Dubin’s Highbridge Capital Management said goodbye to the largest position of all the investors tracked by Insider Monkey, totaling an estimated $1.2 million in stock. Joel Greenblatt’s fund, Gotham Asset Management, also cut its stock, about $1 million worth.

Let’s also examine hedge fund activity in other stocks similar to Emcor Group Inc (NYSE:EME). These stocks are Lions Gate Entertainment Corp. (USA) (NYSE:LGF), NuVasive, Inc. (NASDAQ:NUVA), Two Harbors Investment Corp (NYSE:TWO), and Black Stone Minerals LP (NYSE:BSM). All of these stocks’ market caps are closest to EME’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
LGF 28 971484 -12
NUVA 27 381837 -2
TWO 21 111088 3
BSM 7 21323 0

As you can see these stocks had an average of 21 funds with bullish positions and the average amount invested in these stocks was $371 million, which is higher than the $121 million figure in EME’s case. Lions Gate Entertainment Corp. (USA) (NYSE:LGF) is the most popular stock in this table. On the other hand Black Stone Minerals LP (NYSE:BSM) is the least popular one with only 7 bullish hedge fund positions. Emcor Group Inc (NYSE:EME) 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 Lions Gate Entertainment Corp. (USA) (NYSE:LGF) might be a better candidate to consider taking a long position in.

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