Is Eagle Bulk Shipping Inc. (EGLE) Going to Burn These Hedge Funds?

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With a general bullishness amongst the heavyweights, key hedge funds were breaking ground themselves. Q Investments (Specter Holdings) created the biggest position in Eagle Bulk Shipping Inc. (NASDAQ:EGLE). Q Investments (Specter Holdings) had $4 million invested in the company at the end of the quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Eagle Bulk Shipping Inc. (NASDAQ:EGLE) but similarly valued. These stocks are PICO Holdings Inc (NASDAQ:PICO), Ducommun Incorporated (NYSE:DCO), Eaton Vance Senior Income Trust (NYSE:EVF), and Liquidity Services, Inc. (NASDAQ:LQDT). All of these stocks’ market caps are closest to EGLE’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PICO 11 34940 1
DCO 12 14462 3
EVF 4 6974 1
LQDT 17 20811 1

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $19 million, significantly below the $161 million figure in EGLE’s case. Liquidity Services, Inc. (NASDAQ:LQDT) is the most popular stock in this table. On the other hand Eaton Vance Senior Income Trust (NYSE:EVF) is the least popular one with only 4 bullish hedge fund positions. Eagle Bulk Shipping Inc. (NASDAQ:EGLE) 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 LQDT might be a better candidate to consider a long position.

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