Hedge Funds Are Dumping Double Eagle Acqusition Corp (EAGL)

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Judging by the fact that Double Eagle Acqusition Corp (NASDAQ:EAGL) has witnessed bearish sentiment from the smart money, logic holds that there were a few fund managers that elected to cut their positions entirely heading into Q4. At the top of the heap, Jacob Gottlieb’s Visium Asset Management dumped the largest stake of all the hedgies tracked by Insider Monkey, totaling an estimated $4 million in stock. Buckley Ratchford’s fund, Wingspan Investment Management, also cut its stock, about $2 million worth of EAGL shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Double Eagle Acqusition Corp (NASDAQ:EAGL) but similarly valued. We will take a look at Westlake Chemical Partners LP (NYSE:WLKP), Ultratech, Inc. (NASDAQ:UTEK), tronc Inc (NASDAQ:TRNC), and Radware Ltd. (NASDAQ:RDWR). This group of stocks’ market valuations match EAGL’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
WLKP 4 1868 0
UTEK 17 139213 6
TRNC 15 175066 2
RDWR 11 167430 2

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $121 million. That figure was $240 million in EAGL’s case. Ultratech, Inc. (NASDAQ:UTEK) is the most popular stock in this table. On the other hand Westlake Chemical Partners LP (NYSE:WLKP) is the least popular one with only 4 bullish hedge fund positions. Double Eagle Acqusition Corp (NASDAQ:EAGL) 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 UTEK might be a better candidate to consider taking a long position in.

Disclosure: None


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