Carlyle Group LP (CG): Are Hedge Funds Right About This Stock?

It’s also worth mentioning that Eric Halet and Davide Serra’s Algebris Investments dumped the largest investment of the 700 funds tracked by Insider Monkey, totaling close to $10.3 million in call options.. Israel Englander’s fund, Millennium Management, also dumped its call options., about $6.3 million worth. These bearish behaviors are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s check out hedge fund activity in other stocks similar to Carlyle Group LP (NASDAQ:CG). These stocks are IAC/InterActiveCorp (NASDAQ:IACI), EnCana Corporation (USA) (NYSE:ECA), Axis Capital Holdings Limited (NYSE:AXS), and Pilgrim’s Pride Corporation (NASDAQ:PPC). This group of stocks’ market caps match CG’s market cap.

As you can see these stocks had an average of 32 hedge funds with bullish positions and the average amount invested in these stocks was $742 million. That figure was just $58 million in CG’s case. IAC/InterActiveCorp (NASDAQ:IACI) is the most popular stock in this table, while Axis Capital Holdings Limited (NYSE:AXS) is the least popular one with only 25 bullish hedge fund positions. Compared to these stocks Carlyle Group LP (NASDAQ:CG) is even less popular than AXS. 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.