Hedge Funds Are Betting On Cia Energetica de Minas Gerais CEMIG-ADR (CIG)

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As industrywide interest jumped, some big names have jumped into Cia Energetica de Minas Gerais CEMIG-ADR (NYSE:CIG) headfirst. Alden Global Capital, led by Randall Smith, created the biggest position in Cia Energetica de Minas Gerais CEMIG-ADR (NYSE:CIG). Alden Global Capital had $2 million invested in the company at the end of the quarter. Guy Shahar’s DSAM Partners also initiated a $0.9 million position during the quarter. The other funds with brand new CIG positions are D E Shaw, Chao Ku’s Nine Chapters Capital Management, and Paul Tudor Jones’ Tudor Investment Corp.

Let’s now take a look at hedge fund activity in other stocks similar to Companhia Energetica Minas Gerais (ADR) (NYSE:CIG). We will take a look at Cantel Medical Corp. (NYSE:CMN), American Eagle Outfitters (NYSE:AEO), Brookdale Senior Living, Inc. (NYSE:BKD), and Sunoco LP (NYSE:SUN). This group of stocks’ market caps match CIG’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CMN 16 183661 -2
AEO 26 274359 -5
BKD 35 953569 -6
SUN 12 47552 0

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $365 million. That figure was $32 million in CIG’s case. Brookdale Senior Living, Inc. (NYSE:BKD) is the most popular stock in this table. On the other hand Sunoco LP (NYSE:SUN) is the least popular one with only 12 bullish hedge fund positions. Cia Energetica de Minas Gerais CEMIG-ADR (NYSE:CIG) 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 BKD might be a better candidate to consider taking a long position in.

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Disclosure: None




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