Hedge Funds Are Dumping Capstone Turbine Corporation (CPST)

Seeing as Capstone Turbine Corporation (NASDAQ:CPST) has experienced a bearish sentiment from the entirety of the hedge funds we track, it’s safe to say that there exists a select few money managers that elected to cut their positions entirely last quarter. Intriguingly, Kerr Neilson’s Platinum Asset Management said goodbye to the largest stake of all the hedgies tracked by Insider Monkey, valued at close to $0.4 million in stock. Ben Levine, Andrew Manuel and Stefan Renold’s fund, LMR Partners, also sold off its stock, about $0.2 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest dropped by 2 funds last quarter.

Let’s now review hedge fund activity in other stocks similar to Capstone Turbine Corporation (NASDAQ:CPST). We will take a look at Energy Recovery, Inc. (NASDAQ:ERII), ContraFect Corp (NASDAQ:CFRX), Advent/Claymore Enhanced Growth & Income (NYSE:LCM), and Ellington Residential Mortgage REIT (NYSE:EARN). All of these stocks’ market caps are similar to CPST’s market cap.

As you can see these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $5 million. That figure was also $5 million in CPST’s case. ContraFect Corp (NASDAQ:CFRX) is the most popular stock in this table. On the other hand Energy Recovery, Inc. (NASDAQ:ERII) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Capstone Turbine Corporation (NASDAQ:CPST) 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.