Hedge Funds Are Selling Calpine Corporation (CPN)

Seeing as Calpine Corporation (NYSE:CPN) has witnessed bearish sentiment from hedge fund managers, it’s safe to say that there exists a select few hedge funds who were dropping their positions entirely last quarter. Interestingly, Ari Zweiman’s 683 Capital Partners dumped the biggest stake of the “upper crust” of funds monitored by Insider Monkey, totaling an estimated $54.4 million in stock, and Nehal Chopra’s Ratan Capital Group was right behind this move, as the fund dumped about $37.9 million worth of CPN shares. These transactions are intriguing to say the least, as aggregate hedge fund interest fell by 2 funds last quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Calpine Corporation (NYSE:CPN) but similarly valued. We will take a look at Relx PLC (ADR) (NYSE:RELX), Keysight Technologies Inc (NYSE:KEYS), Arrow Electronics, Inc. (NYSE:ARW), and PerkinElmer, Inc. (NYSE:PKI). All of these stocks’ market caps match CPN’s market cap.

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $244 million. That figure was $983 million in CPN’s case. Arrow Electronics, Inc. (NYSE:ARW) is the most popular stock in this table. On the other hand Relx PLC (ADR) (NYSE:RELX) is the least popular one with only 5 bullish hedge fund positions. With 38 long hedge fund positions, Calpine Corporation (NYSE:CPN) is the superstar of this group, having also attracted the most of the hedgies’ money. 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.