Is Renewable Energy Group Inc (REGI) Going to Burn These Hedge Funds?

Due to the fact that Renewable Energy Group Inc (NASDAQ:REGI) has witnessed a falling interest from the entirety of the hedge funds we track, logic holds that there was a specific group of funds that slashed their positions entirely heading into Q4. Interestingly, Richard Driehaus’ Driehaus Capital dumped the biggest stake of the 700 funds tracked by Insider Monkey, totaling an estimated $3.2 million in stock, and Howard Marks’s Oaktree Capital Management was right behind this move, as the fund sold off about $1.4 million worth of shares. These transactions are important to note, as aggregate hedge fund interest fell by 5 funds heading into Q4.

Let’s now take a look at hedge fund activity in other stocks similar to Renewable Energy Group Inc (NASDAQ:REGI). These stocks are Park Electrochemical Corp. (NYSE:PKE), Gain Capital Holdings Inc (NYSE:GCAP), Clifton Bancorp, Inc. (NASDAQ:CSBK), and Sun Bancorp, Inc. /NJ (NASDAQ:SNBC). All of these stocks’ market caps are similar to Renewable Energy Group Inc (NASDAQ:REGI)’s market cap.

As you can see, these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $67 million. That figure was $47 million in Renewable Energy Group Inc (NASDAQ:REGI)’s case. Gain Capital Holdings Inc (NYSE:GCAP) is the most popular stock in this table. On the other hand, Sun Bancorp, Inc. /NJ (NASDAQ:SNBC) is the least popular one with only 5 bullish hedge fund positions. Renewable Energy Group Inc (NASDAQ:REGI) 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, Gain Capital Holdings Inc (NYSE:GCAP) might be a better candidate to consider a long position.