Hedge Funds Are Dumping Dynegy Inc. (DYN)

Because Dynegy Inc. (NYSE:DYN) has faced falling interest from hedge fund managers, logic holds that there exists a select few money managers who were dropping their positions entirely last quarter. Interestingly, Zach Schreiber’s Point State Capital cut the biggest investment of the “upper crust” of funds watched by Insider Monkey, valued at close to $61.3 million in stock. Robert Pitts’s fund, Steadfast Capital Management, also said goodbye to its stock, about $55.5 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest fell by 7 funds last quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Dynegy Inc. (NYSE:DYN) but similarly valued. These stocks are IMAX Corporation (USA) (NYSE:IMAX), NGL Energy Partners LP (NYSE:NGL), LPL Financial Holdings Inc (NASDAQ:LPLA), and Masonite International Corp (NYSE:DOOR). This group of stocks’ market valuations are closest to DYN’s market valuation.

As you can see these stocks had an average of 13.25 hedge funds with bullish positions and the average amount invested in these stocks was $356 million. That figure was $760 million in DYN’s case. Masonite International Corp (NYSE:DOOR) is the most popular stock in this table. On the other hand NGL Energy Partners LP (NYSE:NGL) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Dynegy Inc. (NYSE:DYN) 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.