Judging by the fact that Tenneco Inc (NYSE:TEN) has faced bearish sentiment from hedge fund managers, it’s easy to see that there is a sect of hedgies who sold off their positions entirely by the end of the third quarter. It’s worth mentioning that D E Shaw dropped the biggest position of the “upper crust” of funds followed by Insider Monkey, valued at an estimated $2.9 million in stock. Gregg Moskowitz’s fund, Interval Partners, also cut its stock, about $1.6 million worth. These moves are important to note, as total hedge fund interest fell by 3 funds by the end of the third quarter.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Tenneco Inc (NYSE:TEN) but similarly valued. These stocks are PDC Energy Inc (NASDAQ:PDCE), LaSalle Hotel Properties (NYSE:LHO), Fitbit Inc (NYSE:FIT), and Littelfuse, Inc. (NASDAQ:LFUS). All of these stocks’ market caps are closest to TEN’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $230 million. That figure was $201 million in TEN’s case. Fitbit Inc (NYSE:FIT) is the most popular stock in this table. On the other hand LaSalle Hotel Properties (NYSE:LHO) is the least popular one with only 13 bullish hedge fund positions. Tenneco Inc (NYSE:TEN) 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 FIT might be a better candidate to consider a long position.