Should You Avoid Clean Energy Fuels Corp (CLNE)?

Since Clean Energy Fuels Corp (NASDAQ:CLNE) has faced falling interest from hedge fund managers, it’s easy to see that there were a few funds who sold off their full holdings heading into Q4. Interestingly, Robert Vollero and Gentry T. Beach’s Vollero Beach Capital Partners got rid of the largest investment of the 700 funds tracked by Insider Monkey, comprising close to $1.5 million in stock. Glenn Russell Dubin’s fund, Highbridge Capital Management, also sold off its stock, about $0.4 million worth.

Let’s now review hedge fund activity in other stocks similar to Clean Energy Fuels Corp (NASDAQ:CLNE). These stocks are Francesca’s Holdings Corp (NASDAQ:FRAN), CoLucid Pharmaceuticals Inc (NASDAQ:CLCD), Sanchez Energy Corp (NYSE:SN), and Angie’s List Inc (NASDAQ:ANGI). This group of stocks’ market valuations are closest to CLNE’s market valuation.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $100 million. That figure was $32 million in CLNE’s case. Francesca’s Holdings Corp (NASDAQ:FRAN) is the most popular stock in this table. On the other hand Angie’s List Inc (NASDAQ:ANGI) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Clean Energy Fuels Corp (NASDAQ:CLNE) is even less popular than ANGI. 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.

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