Hedge Funds Remain Underweight Tesla Motors Inc (TSLA)

Because Tesla Motors Inc (NASDAQ:TSLA) has encountered a decline in interest from the smart money, it’s easy to see that there exists a select few funds who sold off their positions entirely by the end of the third quarter. At the top of the heap, Ken Griffin’s Citadel Investment Group dropped the largest investment of the 700 funds studied by Insider Monkey, valued at close to $214.5 million in call options. Anand Parekh’s fund, Alyeska Investment Group, also said goodbye to its stock, about $21.2 million worth.

Let’s also examine hedge fund activity in other stocks similar to Tesla Motors Inc (NASDAQ:TSLA). These stocks are Spectra Energy Corp. (NYSE:SE), Eaton Corporation, PLC Ordinary Shares (NYSE:ETN), Aon PLC (NYSE:AON), and Twenty-First Century Fox Inc (NASDAQ:FOXA). This group of stocks’ market values are similar to TSLA’s market value.

As you can see these stocks had an average of 36 hedge funds with bullish positions and the average amount invested in these stocks was $1.81 billion. That figure was $1.01 billion in TSLA’s case. Twenty-First Century Fox Inc (NASDAQ:FOXA) is the most popular stock in this table. On the other hand Spectra Energy Corp. (NYSE:SE) is the least popular one with only 25 bullish hedge fund positions. Tesla Motors Inc (NASDAQ:TSLA) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard FOXA might be a better candidate to consider taking a long position in.

Disclosure: None