Hedge Funds Aren’t Crazy About PowerSecure International, Inc. (POWR) Anymore

Since PowerSecure International, Inc. (NYSE:POWR) has experienced bearish sentiment from the smart money, logic holds that there exists a select few money managers that decided to sell off their full holdings in the third quarter. At the top of the heap, Richard Driehaus’s Driehaus Capital said goodbye to the largest position of all the hedgies watched by Insider Monkey, comprising an estimated $0.9 million in stock, and Josh Goldberg’s G2 Investment Partners Management was right behind this move, as the fund sold off about $0.4 million worth. These moves are intriguing to say the least, as total hedge fund interest dropped by 4 funds in the third quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as PowerSecure International, Inc. (NYSE:POWR) but similarly valued. We will take a look at Cohu, Inc. (NASDAQ:COHU), Fifth Street Senior Floating Rate Corp (NASDAQ:FSFR), Empresas ICA SA (ADR) (NYSE:ICA), and First Connecticut Bancorp Inc (NASDAQ:FBNK). This group of stocks’ market valuations match POWR’s market valuation.

As you can see these stocks had an average of 7.75 hedge funds with bullish positions and the average amount invested in these stocks was $18 million. That figure was $12 million in POWR’s case. Cohu, Inc. (NASDAQ:COHU) is the most popular stock in this table. On the other hand Fifth Street Senior Floating Rate Corp (NASDAQ:FSFR) is the least popular one with only 4 bullish hedge fund positions. PowerSecure International, Inc. (NYSE:POWR) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard COHU might be a better candidate to consider a long position.