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Do Hedge Funds Love Entergy Corporation (ETR)?

As aggregate interest increased, some big names were breaking ground themselves. Luminus Management, managed by Jonathan Barrett and Paul Segal, assembled the biggest position in Entergy Corporation (NYSE:ETR). Luminus Management had $65.9 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $54 million position during the quarter. The other funds with brand new ETR positions are Jos Shaver’s Electron Capital Partners, Peter Muller’s PDT Partners, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

Let’s check out hedge fund activity in other stocks similar to Entergy Corporation (NYSE:ETR). We will take a look at Noble Energy, Inc. (NYSE:NBL), Hanesbrands Inc. (NYSE:HBI), The Gap Inc. (NYSE:GPS), and Liberty Media Corp (NASDAQ:LMCK). This group of stocks’ market valuations resemble ETR’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NBL 44 1897931 7
HBI 32 1072465 -2
GPS 34 773243 13
LMCK 39 1943732 7

As you can see these stocks had an average of 37.25 hedge funds with bullish positions and the average amount invested in these stocks was $1422 million. That figure was $684 million in ETR’s case. Noble Energy, Inc. (NYSE:NBL) is the most popular stock in this table. On the other hand Hanesbrands Inc. (NYSE:HBI) is the least popular one with only 32 bullish hedge fund positions. Compared to these stocks Entergy Corporation (NYSE:ETR) is even less popular than HBI. 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.

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