Hedge Funds Are Dumping Tredegar Corporation (TG)

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Judging by the fact that Tredegar Corporation (NYSE:TG) has witnessed bearish sentiment from the entirety of the hedge funds we track, logic holds that there exists a select few hedgies who were dropping their positions entirely by the end of the third quarter. At the top of the heap, D. E. Shaw’s D E Shaw said goodbye to the biggest position of all the hedgies followed by Insider Monkey, totaling an estimated $0.5 million in stock, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital was right behind this move, as the fund dropped about $0.5 million worth of shares. These moves are intriguing to say the least, as aggregate hedge fund interest was cut by 2 funds by the end of the third quarter.

Let’s now review hedge fund activity in other stocks similar to Tredegar Corporation (NYSE:TG). We will take a look at Moneygram International Inc (NYSE:MGI), Crestwood Equity Partners LP (NYSE:CEQP), pdvWireless Inc (NASDAQ:PDVW), and Kadant Inc. (NYSE:KAI). This group of stocks’ market caps are closest to TG’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MGI 13 81088 2
CEQP 6 991 0
PDVW 7 189823 -4
KAI 15 28066 2

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $75 million, compared to $64 million in TG’s case. Kadant Inc. (NYSE:KAI) is the most popular stock in this table, while Crestwood Equity Partners LP (NYSE:CEQP) is the least popular one with only 6 bullish hedge fund positions. Tredegar Corporation (NYSE:TG) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard KAI might be a better candidate to consider a long position.

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