Investor Interest In California Water Service Group (CWT) Drying Up

Because California Water Service Group (NYSE:CWT) has experienced bearish sentiment from hedge fund managers, it’s easy to see that there exists a select few hedgies that elected to cut their positions entirely during the last quarter. At the top of the heap, Thomas M. Fitzgerald’s Longbow Capital Partners dropped the biggest stake of the 700 funds tracked by Insider Monkey, comprising an estimated $1.1 million in stock, and Chao Ku of Nine Chapters Capital Management was right behind this move, as the fund cut about $0.5 million worth of shares. These transactions are intriguing to say the least, as aggregate hedge fund interest dropped by 5 funds last quarter.

Let’s now take a look at hedge fund activity in other stocks with a market capitalization similar to California Water Service Group (NYSE:CWT). These stocks are Sibanye Gold Ltd (ADR) (NYSE:SBGL), Renren Inc (NYSE:RENN), TerraForm Global Inc (NASDAQ:GLBL), and MiMedx Group Inc (NASDAQ:MDXG).

As you can see these stocks had an average of 13.5 hedge funds with bullish positions and the average amount invested in these stocks was $75 million. That figure was $66 million in California Water Service Group’s case. TerraForm Global Inc (NASDAQ:GLBL) is the most popular stock in this table. On the other hand Renren Inc (NYSE:RENN) is the least popular one with only 6 bullish hedge fund positions. California Water Service Group (NYSE:CWT) 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 TerraForm might be a better candidate to consider a long position.