Is SCANA Corporation (SCG) Going to Burn These Hedge Funds?

As industrywide interest jumped, some big names have been driving this bullishness. Ellington, led by Mike Vranos, initiated the most valuable position in SCANA Corporation (NYSE:SCG). According to its latest 13F filing, the fund had $1.8 million invested in the company at the end of the quarter. Stuart J. Zimmer’s Zimmer Partners also made a $1.2 million investment in the stock during the quarter. The following funds were also among the new SCG investors: David Harding’s Winton Capital Management, Ken Griffin’s Citadel Investment Group, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s now review hedge fund activity in other stocks similar to SCANA Corporation (NYSE:SCG). We will take a look at ServiceNow Inc (NYSE:NOW), AMETEK, Inc. (NYSE:AME), Regions Financial Corporation (NYSE:RF), and Dover Corp (NYSE:DOV). All of these stocks’ market caps match SCG’s market cap.

As you can see these stocks had an average of 31 hedge funds with bullish positions and the average amount invested in these stocks was $922 million. That figure was a minor $254 million in SCG’s case. Regions Financial Corporation (NYSE:RF) is the most popular stock in this table. On the other hand Dover Corp (NYSE:DOV) is the least popular one with only 28 bullish hedge fund positions. Compared to these stocks SCANA Corporation (NYSE:SCG) is even less popular than DOV. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: none.