Here is What Hedge Funds Think About Melco Crown Entertainment Ltd (ADR) (MPEL)

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that dropped their entire stakes in the stock during the third quarter. Interestingly, Matt Sirovich and Jeremy Mindich’s Scopia Capital dropped the biggest investment of the 700 funds followed by Insider Monkey, comprising about $44.4 million in stock. Israel Englander’s fund, Millennium Management, also dropped its stock, about $8.8 million worth.

Let’s check out hedge fund activity in other stocks similar to Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL). We will take a look at BancorpSouth, Inc. (NYSE:BXS), SunPower Corporation (NASDAQ:SPWR), Knight Transportation (NYSE:KNX), and Impax Laboratories Inc (NASDAQ:IPXL). This group of stocks’ market valuations are similar to MPEL’s market valuation.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $145 million. That figure was $371 million in MPEL’s case. SunPower Corporation (NASDAQ:SPWR) is the most popular stock in this table. On the other hand Knight Transportation (NYSE:KNX) is the least popular one with only 9 bullish hedge fund positions. Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL) 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 SPWR might be a better candidate to consider taking a long position in.

Disclosure: None