Hedge Fund Data Show Slim Chances of Merger Between These Two Utilities Companies

In the case of Pepco Holdings, Inc. (NYSE:POM), hedge funds clearly moved away from the stock in the second quarter. The number of funds long on the company declined by three in the said period to 16. They also moved their capital away, as the total value of hedge funds’ holdings declined by nearly 32% quarter-over-quarter to $155.24 million, amid a 6.52% drop of the stock. Moreover, these funds held only 2.30% of the company at the end of June. Jim Simons’ Renaissance Technologies cut its stake in Pepco Holdings in the second quarter by 47% to end June with 1.08 million shares.

Meanwhile, even though there was an inflow of hedge fund capital into the Exelon Corporation (NYSE:EXC) stock in the second quarter, the increase is not significant. The total value of hedge fund holdings in the stock increased by 2.73% on the quarter to $1.07 billion, equal to 3.90% of Exelon’s outstanding stock. The stock gained 0.41% in value in the said period. It should be pointed out, nonetheless, that there was one less hedge fund with a long position in Exelon by the end of the second quarter, bringing the total to 30. Clint Carlson’s Carlson Capital owned 8.38 million shares of Exelon at the end of June, up 93% from the previous quarter.

Disclosure: None