Hedge Funds Are Dumping Gran Tierra Energy Inc. (GTE)

Because Gran Tierra Energy Inc. (NYSEAMEX:GTE) has experienced a decline in interest from hedge fund managers, it’s easy to see that there lies a certain “tier” of money managers that elected to cut their entire stakes last quarter. Interestingly, Noam Gottesman’s GLG Partners cut the largest position of the 700 funds tracked by Insider Monkey, valued at an estimated $0.9 million in stock, and Peter Muller’s PDT Partners was right behind this move, as the fund dropped about $0.2 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Gran Tierra Energy Inc. (NYSEAMEX:GTE) but similarly valued. These stocks are Capital Senior Living Corporation (NYSE:CSU), ePlus Inc. (NASDAQ:PLUS), 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS), and Avianca Holdings SA (ADR) (NYSE:AVH). All of these stocks’ market caps are closest to GTE’s market cap.

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 $53 million. That figure was $120 million in GTE’s case. Capital Senior Living Corporation (NYSE:CSU) is the most popular stock in this table. On the other hand Avianca Holdings SA (ADR) (NYSE:AVH) is the least popular one with only four bullish hedge fund positions. Gran Tierra Energy Inc. (NYSEAMEX:GTE) 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 CSU might be a better candidate to consider a long position.