Encore Wire Corporation (WIRE): Are Hedge Funds Right About This Stock?

Since Encore Wire Corporation (NASDAQ:WIRE) has witnessed a bearish sentiment from the smart money, it’s easy to see that there exists a select few hedge funds who sold off their positions entirely last quarter. At the top of the heap, Martin Whitman’s Third Avenue Management cut the largest position of all the hedgies tracked by Insider Monkey, totaling about $1.4 million in call options., and Glenn Russell Dubin’s Highbridge Capital Management was right behind this move, as the fund cut about $1 million worth of shares. These transactions are important to note, as total hedge fund interest was cut by 2 funds last quarter.

Let’s also examine hedge fund activity in other stocks similar to Encore Wire Corporation (NASDAQ:WIRE). We will take a look at Enanta Pharmaceuticals Inc (NASDAQ:ENTA), Container Store Group Inc (NYSE:TCS), Usa Compression Partners LP (NYSE:USAC), and Global Indemnity plc (NASDAQ:GBLI). This group of stocks’ market valuations match Encore Wire Corporation (NASDAQ:WIRE)‘s market valuation.

As you can see, these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $33 million. That figure was $42 million in Encore Wire Corporation (NASDAQ:WIRE)‘s case. Container Store Group Inc (NYSE:TCS) is the most popular stock in this table. On the other hand, Usa Compression Partners LP (NYSE:USAC) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks, Encore Wire Corporation (NASDAQ:WIRE) 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.