Hedge Funds Are Dumping UGI Corp (UGI)

Seeing as UGI Corp (NYSE:UGI) has experienced a declination in interest from the smart money, we can see that there exists a select few fund managers that decided to sell off their positions entirely in the third quarter. Interestingly, Chao Ku’s Nine Chapters Capital Management cut the biggest stake of the “upper crust” of funds tracked by Insider Monkey, worth close to $5.4 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund sold off about $3 million worth of shares. These moves are important to note, as aggregate hedge fund interest fell by 2 funds in the third quarter.

Let’s now take a look at hedge fund activity in other stocks similar to UGI Corp (NYSE:UGI). We will take a look at Reinsurance Group of America Inc (NYSE:RGA), Qiagen NV (NASDAQ:QGEN), Kilroy Realty Corp (NYSE:KRC), and Waste Connections, Inc. (NYSE:WCN). This group of stocks’ market valuations matches UGI Corp (NYSE:UGI)’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
RGA 16 302110 -2
QGEN 14 106937 -6
KRC 8 58664 -2
WCN 23 324310 1

As you can see, these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $198 million. That figure was $348 million in UGI Corp (NYSE:UGI)’s case. Waste Connections, Inc. (NYSE:WCN) is the most popular stock in this table. On the other hand, Kilroy Realty Corp (NYSE:KRC) is the least popular one with only 8 bullish hedge fund positions. UGI Corp (NYSE:UGI) 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, Waste Connections, Inc. (NYSE:WCN) might be a better candidate to consider a long position.