Hedge Funds Are Dumping Pattern Energy Group Inc (PEGI)

Because Pattern Energy Group Inc (NASDAQ:PEGI) has experienced bearish sentiment from the aggregate hedge fund industry, logic holds that there were a few hedgies who were dropping their entire stakes last quarter. At the top of the heap, Jos Shaver’s Electron Capital Partners said goodbye to the largest investment of the “upper crust” of funds monitored by Insider Monkey, worth an estimated $6 million in stock, and Clint Carlson’s Carlson Capital was right behind this move, as the fund dumped about $5.1 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest dropped by 3 funds last quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Pattern Energy Group Inc (NASDAQ:PEGI) but similarly valued. These stocks are Ladder Capital Corp (NYSE:LADR), Houlihan Lokey Inc (NYSE:HLI), Jumei International Holding Ltd (ADR) (NYSE:JMEI), and National Beverage Corp. (NASDAQ:FIZZ). All of these stocks’ market caps are similar to PEGI’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 $49 million. Hedge funds reported stakes in PEGI with an aggregate value of $184 million. Ladder Capital Corp (NYSE:LADR) is the most popular stock in this table. On the other hand, National Beverage Corp. (NASDAQ:FIZZ) is the least popular one with only 8 bullish hedge fund positions. Pattern Energy Group Inc (NASDAQ:PEGI) 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 LADR might be a better candidate to consider a long position.