Is El Paso Electric Company (EE) Worthy of Your Portfolio?

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. At the top of the heap, Ken Griffin’s Citadel Investment Group dropped the largest stake of all the hedgies monitored by Insider Monkey, worth close to $2.1 million in stock, and Paul Tudor Jones’ Tudor Investment Corp was right behind this move, as the fund cut about $0.5 million worth of shares.

Let’s also examine hedge fund activity in other stocks similar to El Paso Electric Company (NYSE:EE). We will take a look at Cosan Limited (USA) (NYSE:CZZ), Alexander & Baldwin Inc (NYSE:ALEX), FTI Consulting, Inc. (NYSE:FCN), and Franklin Electric Co. (NASDAQ:FELE). This group of stocks’ market values are closest to EE’s market value.

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 $125 million. That figure was $142 million in EE’s case. Cosan Limited (USA) (NYSE:CZZ) is the most popular stock in this table. On the other hand Franklin Electric Co. (NASDAQ:FELE) is the least popular one with only eight bullish hedge fund positions. El Paso Electric Company (NYSE:EE) 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 CZZ might be a better candidate to consider taking a long position in.

Disclosure: none