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Hedge Funds Are Cooling to EnerSys (ENS)

Due to the fact that EnerSys (NYSE:ENS) has experienced a decline in interest from the aggregate hedge fund industry, it’s safe to say that there was a specific group of funds who sold off their full holdings by the end of the third quarter. Intriguingly, Martin Whitman’s Third Avenue Management cut the biggest position of the “upper crust” of funds watched by Insider Monkey, worth an estimated $2.1 million in call options.. Matthew Hulsizer’s fund, PEAK6 Capital Management, also said goodbye to its call options, about $1.5 million worth. These transactions are intriguing to say the least, as total hedge fund interest dropped by 1 fund by the end of the third quarter.

Let’s go over hedge fund activity in other stocks similar to EnerSys (NYSE:ENS). We will take a look at Masimo Corporation (NASDAQ:MASI), Janus Capital Group Inc (NYSE:JNS), The Wendy’s Company (NASDAQ:WEN), and The Geo Group, Inc. (NYSE:GEO). This group of stocks’ market caps match ENS’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MASI 26 163915 0
JNS 20 306404 5
WEN 18 908931 -1
GEO 14 152825 1

As you can see these stocks had an average of 19.5 hedge funds with bullish positions and the average amount invested in these stocks was $383 million. That figure was $58 million in ENS’s case. Masimo Corporation (NASDAQ:MASI) is the most popular stock in this table. On the other hand The Geo Group, Inc. (NYSE:GEO) is the least popular one with only 14 bullish hedge fund positions. EnerSys (NYSE:ENS) 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 MASI might be a better candidate to consider a long position in.

Disclosure: None

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