Is Third Point Reinsurance Ltd (TPRE) Worthy of Your Portfolio?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually said goodbye to their positions entirely. At the top of the heap, Benjamin A. Smith’s Laurion Capital Management said goodbye to the biggest investment of all the hedgies watched by Insider Monkey, valued at about $0.4 million in stock. George Hall’s fund, Clinton Group, also sold off its stock, about $0.3 million worth.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Third Point Reinsurance Ltd (NYSE:TPRE) but similarly valued. We will take a look at SunPower Corporation (NASDAQ:SPWR), Terreno Realty Corporation (NYSE:TRNO), AVG Technologies NV (NYSE:AVG), and M.D.C. Holdings, Inc. (NYSE:MDC). All of these stocks’ market caps are similar to TPRE’s market cap.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $50 million. That figure was $24 million in TPRE’s case. SunPower Corporation (NASDAQ:SPWR) is the most popular stock in this table. On the other hand Terreno Realty Corporation (NYSE:TRNO) is the least popular one with only 9 bullish hedge fund positions. Third Point Reinsurance Ltd (NYSE:TPRE) 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 SPWR might be a better candidate to consider taking a long position in.

Disclosure: None