Babcock & Wilcox Enterprises Inc (BW): Hedge Funds Can’t Make Up Their Mind

Seeing as Babcock & Wilcox Enterprises Inc (NYSE:BW) has experienced a decline in interest from the smart money, logic holds that there exists a select few hedgies that decided to sell off their full holdings by the end of the third quarter. Interestingly, Jay Petschek and Steven Major’s Corsair Capital Management dropped the biggest stake of the 700 funds studied by Insider Monkey, valued at about $1.6 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund also sold off about $1.6 million worth of shares.

Let’s go over hedge fund activity in other stocks similar to Babcock & Wilcox Enterprises Inc (NYSE:BW). We will take a look at Five9 Inc (NASDAQ:FIVN), Flotek Industries Inc (NYSE:FTK), Deltic Timber Corp (NYSE:DEL), and CF Corp (NASDAQ:CFCO). This group of stocks’ market valuations match BW’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FIVN 23 116555 7
FTK 16 167644 5
DEL 4 135423 0
CFCO 23 414166 2

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $208 million. That figure was $199 million in BW’s case. Five9 Inc (NASDAQ:FIVN) is the most popular stock in this table. On the other hand Deltic Timber Corp (NYSE:DEL) is the least popular one with only 4 bullish hedge fund positions. Babcock & Wilcox Enterprises Inc (NYSE:BW) 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 FIVN might be a better candidate to consider taking a long position in.

Disclosure: None