Trinseo S.A. (TSE): Are Hedge Funds Right About This Stock?

Seeing as Trinseo S.A. (NYSE:TSE) has witnessed falling interest from the smart money, it’s easy to see that there is a sect of hedgies who were dropping their positions entirely by the end of the third quarter. It’s worth mentioning that Brian Taylor’s Pine River Capital Management cut the largest position of all the hedgies monitored by Insider Monkey, comprising close to $11 million in stock. Israel Englander’s fund, Millennium Management, also cut its stock, about $2.7 million worth. These moves are interesting, as aggregate hedge fund interest was cut by 2 funds by the end of the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Trinseo S.A. (NYSE:TSE) but similarly valued. These stocks are Northwest Bancshares, Inc. (NASDAQ:NWBI), Stamps.com Inc. (NASDAQ:STMP), Cempra Inc (NASDAQ:CEMP), and Belmond Ltd (NYSE:BEL). This group of stocks’ market values are similar to TSE’s market value.

As you can see these stocks had an average of 18.75 hedge funds with bullish positions and the average amount invested in these stocks was $125 million. That figure was $72 million in TSE’s case. Stamps.com Inc. (NASDAQ:STMP) is the most popular stock in this table. On the other hand Northwest Bancshares, Inc. (NASDAQ:NWBI) is the least popular one with only 8 bullish hedge fund positions. Trinseo S.A. (NYSE:TSE) 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 STMP might be a better candidate to consider a long position.