Should You Avoid Six Flags Entertainment Corp (SIX)?

Because Six Flags Entertainment Corp (NYSE:SIX) has experienced falling interest from hedge fund managers, it’s easy to see that there is a sect of funds that slashed their entire stakes last quarter. It’s worth mentioning that Greg Poole’s Echo Street Capital Management cut the biggest investment of the “upper crust” of funds watched by Insider Monkey, comprising close to $16.9 million in stock. Mark Broach’s fund, Manatuck Hill Partners, also cut its investment, about $9.7 million worth of shares. These transactions are interesting, as aggregate hedge fund interest dropped by 4 funds last quarter.

Let’s check out hedge fund activity in other stocks similar to Six Flags Entertainment Corp (NYSE:SIX). We will take a look at Home Properties, Inc. (NYSE:HME), Hexcel Corporation (NYSE:HXL), First Solar, Inc. (NASDAQ:FSLR), and Brocade Communications Systems, Inc. (NASDAQ:BRCD). All of these stocks’ market caps are similar to SIX’s market cap.

As you can see these stocks had an average of 28 hedge funds with bullish positions and the average amount invested in these stocks was $403 million. The amount invested by hedge funds in SIX significantly exceeds the average: $1.05 billion. First Solar, Inc. (NASDAQ:FSLR) is the most popular stock in this table. On the other hand Hexcel Corporation (NYSE:HXL) is the least popular one with only 19 bullish hedge fund positions. Six Flags Entertainment Corp (NYSE:SIX) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard FSLR might be a better candidate to consider a long position.