Hedge Funds Are Selling Edison International (EIX)

Due to the fact that Edison International (NYSE:EIX) has experienced a declination in interest from hedge fund managers, logic holds that there lies a certain “tier” of money managers who sold off their positions entirely heading into Q4. At the top of the heap, Jonathan Barrett and Paul Segal’s Luminus Management said goodbye to the biggest position of all the hedgies watched by Insider Monkey, comprising close to $20.7 million in stock. Israel Englander’s fund, Millennium Management, also dumped its entire holding, about $19.3 million worth of EIX shares. These transactions are important to note, as total hedge fund interest fell by 6 funds heading into Q4.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Edison International (NYSE:EIX) but similarly valued. These stocks are AmerisourceBergen Corp. (NYSE:ABC), Nidec Corporation (ADR) (NYSE:NJ), Prologis Inc (NYSE:PLD), and ARM Holdings plc (ADR) (NASDAQ:ARMH). This group of stocks’ market valuations match EIX’s market valuation.

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $421 million. That figure was $707 million in EIX’s case. AmerisourceBergen Corp. (NYSE:ABC) is the most popular stock in this table, whereas Nidec Corporation (ADR) (NYSE:NJ) is the least popular one with only 4 bullish hedge fund positions. Edison International (NYSE:EIX) is not the most popular stock in this group, but hedge fund interest is still above average. Despite the fact that this is a slightly positive signal, we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ABC might be a better candidate to consider a long position.