Clean Energy Fuels Corp (CLNE): Are Hedge Funds Right About This Stock?

Because Clean Energy Fuels Corp (NASDAQ:CLNE) has witnessed a declination in interest from the aggregate hedge fund industry, it’s easy to see that there is a sect of money managers that decided to sell off their full holdings last quarter. It’s worth mentioning that Crispin Odey’s Odey Asset Management Group cut the largest stake of the “upper crust” of funds followed by Insider Monkey, totaling about $1 million in stock. Renaissance Technologies also cut its stock, about $0.6 million worth of shares. These transactions are interesting, as total hedge fund interest was cut by 6 funds last quarter.

Let’s check out hedge fund activity in other stocks similar to Clean Energy Fuels Corp (NASDAQ:CLNE). We will take a look at Corcept Therapeutics Incorporated (NASDAQ:CORT), Multi-Fineline Electronix, Inc. (NASDAQ:MFLX), Catchmark Timber Trust Inc (NYSE:CTT), and Apollo Residential Mortgage Inc (NYSE:AMTG). All of these stocks’ market caps resemble Clean Energy Fuels Corp (NASDAQ:CLNE)’s market cap.

As you can see, these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $26 million. That figure was $5 million in Clean Energy Fuels Corp (NASDAQ:CLNE)’s case. Multi-Fineline Electronix, Inc. (NASDAQ:MFLX) is the most popular stock in this table. On the other hand, Catchmark Timber Trust Inc (NYSE:CTT) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks, Clean Energy Fuels Corp (NASDAQ:CLNE) is even less popular than Catchmark Timber Trust Inc (NYSE:CTT). 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.