Hedge Funds Are Selling Echostar Corporation (SATS)

Because Echostar Corporation (NASDAQ:SATS) has experienced falling interest from hedge fund managers, it’s easy to see that there is a sect of fund managers who were dropping their full holdings last quarter. Interestingly, Millennium Management Subsidiary’s Blue Arrow Capital Management sold off the largest investment of all the hedgies followed by Insider Monkey, worth an estimated $8.5 million in stock, and Ray Carroll’s Breton Hill Capital was right behind this move, as the fund said goodbye to about $1.7 million worth of shares. These moves are interesting, as aggregate hedge fund interest was cut by 1 fund last quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Echostar Corporation (NASDAQ:SATS) but similarly valued. These stocks are Reliance Steel & Aluminum (NYSE:RS), Tesoro Logistics LP (NYSE:TLLP), Copart, Inc. (NASDAQ:CPRT), and Ryder System, Inc. (NYSE:R). This group of stocks’ market valuations are closest to SATS’s market valuation.

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $367 million. That figure was $369 million in SATS’s case. Copart, Inc. (NASDAQ:CPRT) is leading the pack, while Tesoro Logistics LP (NYSE:TLLP) is at the other end of the specter with only 9 bullish hedge fund positions. Echostar Corporation (NASDAQ:SATS) 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 CPRT might be a better candidate to consider a long position.